Advanced Search
MyIDEAS: Login to save this paper or follow this series

Microsimulation as a Tool for Evaluating Redistribution Policies

Contents:

Author Info

  • François Bourguignon

    (The World Bank and PSE -Paris-Jourdan Sciences Economiques-)

  • Amedeo Spadaro

    ()
    (PSE -Paris-Jourdan Sciences Economiques- and Universitat de les Illes Balears, Palma de Mallorca)

Abstract

During the last 20 years, microsimulation models have been increasingly applied in qualitative and quantitative analysis of public policies. This paper discusses microsimulation techniques and their theoretical background as a tool for the analysis of public policies. It next analyses basic principles for using microsimulation models and interpreting their results, with emphasis on tax incidence, redistribution and poverty analysis. It then discusses social welfare analysis permitted by microsimulation techniques and points to the limits of present approaches and some directions for future developments.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ecineq.org/milano/WP/ECINEQ2006-20.pdf
Download Restriction: no

Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 20.

as in new window
Length: 42 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2006-20

Contact details of provider:
Email:
Web page: http://www.ecineq.org
More information through EDIRC

Related research

Keywords: Keywords: Microsimulation; Evaluation of Public Policies; Redistribution; Poverty; Inequality.;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. François Bourguignon & Anne-Sophie Robilliard & Sherman Robinson, 2003. "Representative versus real households in the macro-economic modeling of inequality," Working Papers, DIAL (Développement, Institutions et Mondialisation) DT/2003/10, DIAL (Développement, Institutions et Mondialisation).
  2. François Bourguignon & Amedeo Spadaro, 2012. "Tax–benefit revealed social preferences," Journal of Economic Inequality, Springer, Springer, vol. 10(1), pages 75-108, March.
  3. Andrá Decoster & Guy Van Camp, 2001. "Redistributive effects of the shift from personal income taxes to indirect taxes: Belgium 1988-93," Fiscal Studies, Institute for Fiscal Studies, Institute for Fiscal Studies, vol. 22(1), pages 79-106, March.
  4. John Creedy & Guyonne Kalb & Hsein Kew, 2004. "Confidence Intervals for Policy Reforms in Behavioural Tax Microsimulation Modelling," Melbourne Institute Working Paper Series, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne wp2004n32, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  5. Thomas Hertel & Jeffrey Reimer, 2005. "Predicting the poverty impacts of trade reform," The Journal of International Trade & Economic Development, Taylor & Francis Journals, Taylor & Francis Journals, vol. 14(4), pages 377-405.
  6. Klevmarken, N. A., 1997. "Modelling Behavioural Response in EUROMOD," Cambridge Working Papers in Economics, Faculty of Economics, University of Cambridge 9720, Faculty of Economics, University of Cambridge.
  7. King, Mervyn A., 1983. "Welfare analysis of tax reforms using household data," Journal of Public Economics, Elsevier, Elsevier, vol. 21(2), pages 183-214, July.
  8. Hilary Hoynes, 1993. "Welfare Transfers in Two-Parent Families: Labor Supply and Welfare Participation Under AFDC-UP," NBER Working Papers 4407, National Bureau of Economic Research, Inc.
  9. James J. Heckman & Lance Lochner & Christopher Taber, 1998. "Explaining Rising Wage Inequality: Explorations with a Dynamic General Equilibrium Model of Labor Earnings with Heterogeneous Agents," NBER Working Papers 6384, National Bureau of Economic Research, Inc.
  10. Gine, Xavier & Townsend, Robert M., 2003. "Evaluation of financial liberalization : a general equilibrium model with constrained occupation choice," Policy Research Working Paper Series 3014, The World Bank.
  11. Mirrlees, James A, 1971. "An Exploration in the Theory of Optimum Income Taxation," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 38(114), pages 175-208, April.
  12. Callan, Tim & Sutherland, Holly, 1997. "The impact of comparable policies in European countries: Microsimulation approaches," European Economic Review, Elsevier, Elsevier, vol. 41(3-5), pages 627-633, April.
  13. Paolo Liberati, 2001. "The Distributional Effects of Indirect Tax Changes in Italy," International Tax and Public Finance, Springer, Springer, vol. 8(1), pages 27-51, January.
  14. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier.
  15. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521266550.
  16. Duclos, Jean-Yves, 1995. "Modelling the take-up of state support," Journal of Public Economics, Elsevier, Elsevier, vol. 58(3), pages 391-415, November.
  17. Luc Savard, 2003. "Poverty and Income Distribution in a CGE-Household Micro-Simulation Model: Top-Down/Bottom Up Approach," Cahiers de recherche, CIRPEE 0343, CIRPEE.
  18. Amedeo spadaro, 2003. "Micro-simulation and Normative Policy Evaluation: an Application to some EU Tax-Benefits System," DELTA Working Papers, DELTA (Ecole normale supérieure) 2003-23, DELTA (Ecole normale supérieure).
  19. Bourguignon, F. & O'Donoghue, C. & Sastre-Descals, J. & Spadaro, A. & Utili, F., 1997. "Eur 3: A Prototype European Tax-Benefit Model," DELTA Working Papers, DELTA (Ecole normale supérieure) 97-30, DELTA (Ecole normale supérieure).
  20. Olivier Bargain, 2004. "On modeling household labor supply with taxation," DELTA Working Papers, DELTA (Ecole normale supérieure) 2004-14, DELTA (Ecole normale supérieure).
  21. Christiansen, Vidar & Jansen, Eilev S., 1978. "Implicit social preferences in the Norwegian system of indirect taxation," Journal of Public Economics, Elsevier, Elsevier, vol. 10(2), pages 217-245, October.
  22. Merz, Joachim, 1991. "Microsimulation -- A survey of principles, developments and applications," International Journal of Forecasting, Elsevier, Elsevier, vol. 7(1), pages 77-104, May.
  23. François Bourguignon & Maurizio Bussolo & Luiz A. Pereira da Silva, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution : Macro-Micro Evaluation Techniques and Tools," World Bank Publications, The World Bank, number 6586, August.
  24. Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-51, September.
  25. Redmond,Gerry & Sutherland,Holly & Wilson,Moira, 1998. "The Arithmetic of Tax and Social Security Reform," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521632249.
  26. Xisco Oliver Rullán & Amedeo Spadaro, 2004. "Are Spanish governments really averse to inequality? a normative analysis using the 1999 Spanish tax reform," Investigaciones Economicas, Fundación SEPI, Fundación SEPI, vol. 28(3), pages 551-566, September.
  27. Aaberge, Rolf & Colombino, Ugo & Strom, Steinar, 1999. "Labour Supply in Italy: An Empirical Analysis of Joint Household Decisions, with Taxes and Quantity Constraints," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 14(4), pages 403-22, July-Aug..
  28. Michael P. Keane & Robert Moffitt, 1995. "A structural model of multiple welfare program participation and labor supply," Working Papers, Federal Reserve Bank of Minneapolis 557, Federal Reserve Bank of Minneapolis.
  29. François Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2003. "Conditional Cash Transfers, Schooling and Child Labor : Micro-Simulating Bolsa Escola," DELTA Working Papers, DELTA (Ecole normale supérieure) 2003-07, DELTA (Ecole normale supérieure).
  30. José M. Labeaga & Miguel Rodríguez & Xavier Labandeira, 2006. "A Macro and Microeconomic Integrated Approach to Assessing the Effects of Public Policies," Working Papers 2006-02, FEDEA.
  31. Tsakloglou, Panos & Mitrakos, Theodore, 1998. "On the Distributional Impact of Excise Duties: Evidence from Greece," Public Finance = Finances publiques, , , vol. 53(1), pages 78-101.
  32. Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March.
  33. Denis Cogneau & Anne-Sophie Robilliard, 2001. "Croissance, distribution et pauvreté : un modèle de micro simulation en équilibre général appliqué à Madagascar," Working Papers, DIAL (Développement, Institutions et Mondialisation) DT/2001/19, DIAL (Développement, Institutions et Mondialisation).
  34. Duclos, Jean-Yves & Makdissi, Paul & Wodon, Quentin, 2003. "Poverty-Efficient Transfer Programs: The Role of Targeting and Allocation Rules," Cahiers de recherche, CIRPEE 0305, CIRPEE.
  35. José M. Labeaga, Xisco Oliver & Xisco Oliver & Amedeo Spadaro, . "Discrete choice models of labour Supply, behavioural microsimulation and the Spanish tax reforms," Working Papers 2005-14, FEDEA.
  36. Bonin, Holger & Kempe, Wolfram & Schneider, Hilmar, 2002. "Household Labor Supply Effects of Low-Wage Subsidies in Germany," IZA Discussion Papers 637, Institute for the Study of Labor (IZA).
  37. Maurizio Bussolo & Jann Lay, 2003. "Globalisation and Poverty Changes in Colombia," OECD Development Centre Working Papers 226, OECD Publishing.
  38. Heckman, James J & Sedlacek, Guilherme L, 1990. "Self-selection and the Distribution of Hourly Wages," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 8(1), pages S329-63, January.
  39. Gertler, Paul & Glewwe, Paul, 1990. "The willingness to pay for education in developing countries : Evidence from rural Peru," Journal of Public Economics, Elsevier, Elsevier, vol. 42(3), pages 251-275, August.
  40. Thomas MaCurdy & David Green & Harry Paarsch, 1990. "Assessing Empirical Approaches for Analyzing Taxes and Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 25(3), pages 415-490.
  41. Kaplanoglou, Georgia & Newbery, David Michael, 2003. "Indirect Taxation in Greece: Evaluation and Possible Reform," International Tax and Public Finance, Springer, Springer, vol. 10(5), pages 511-33, September.
  42. José M. Labeaga & Xisco Oliver & Amadéo Spadaro, 2005. "Discrete choice models of labour suppluy, behavioural microsimulation and the Spanish tax reform," PSE Working Papers halshs-00590836, HAL.
  43. Bourguignon, F. & Chiappori, P. & Hugounenq, R., 1992. "Exploring the Distribution and Incentive Effects of Tax Harmonization," DELTA Working Papers, DELTA (Ecole normale supérieure) 92-06, DELTA (Ecole normale supérieure).
  44. Creedy, John & Duncan, Alan, 2002. " Behavioural Microsimulation with Labour Supply Responses," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 16(1), pages 1-39, February.
  45. Robert M. Townsend & Kenichi Ueda, 2006. "Financial Deepening, Inequality, and Growth: A Model-Based Quantitative Evaluation -super-1," Review of Economic Studies, Oxford University Press, vol. 73(1), pages 251-293.
  46. Ahmad, Ehtisham & Stern, Nicholas, 1984. "The theory of reform and indian indirect taxes," Journal of Public Economics, Elsevier, Elsevier, vol. 25(3), pages 259-298, December.
  47. Slemrod, Joel & Yitzhaki, Shlomo & Mayshar, Joram & Lundholm, Michael, 1994. "The optimal two-bracket linear income tax," Journal of Public Economics, Elsevier, Elsevier, vol. 53(2), pages 269-290, February.
  48. Pudney, Stephen & Sutherland, Holly, 1994. "How reliable are microsimulation results? : An analysis of the role of sampling error in a U.K. tax-benefit model," Journal of Public Economics, Elsevier, Elsevier, vol. 53(3), pages 327-365, March.
  49. Duclos, J.Y., 1993. "Estimating and Testing a model of Welfare Participation: The Case of Supplementary Benefits in Britain," Papers, Laval - Recherche en Politique Economique 9331, Laval - Recherche en Politique Economique.
  50. Stern, N. H., 1976. "On the specification of models of optimum income taxation," Journal of Public Economics, Elsevier, Elsevier, vol. 6(1-2), pages 123-162.
  51. Shaohua Chen & Martin Ravallion, 2004. "Welfare Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, World Bank Group, vol. 18(1), pages 29-57.
  52. David Madden, 1995. "An analysis of indirect tax reform in Ireland in the 1980s," Fiscal Studies, Institute for Fiscal Studies, Institute for Fiscal Studies, vol. 16(1), pages 18-37, May.
  53. Martin Browning & Lars Peter Hansen & James J. Heckman, 1999. "Micro Data and General Equilibrium Models," Discussion Papers 99-10, University of Copenhagen. Department of Economics.
  54. Newbery, David M, 1995. "The Distributional Impact of Price Changes in Hungary and the United Kingdom," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 105(431), pages 847-63, July.
  55. Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, 2006. "A Macro and Microeconomic Integrated Approach to Assessing the Effects of Public Policies," Working Papers 22, ECINEQ, Society for the Study of Economic Inequality.
  56. Rolf Aaberge & Ugo Colombino & Erling Holmøy & Birger Strøm & Tom Wennemo, 2004. "Population ageing and fiscal sustainability: An integrated micro-macro analysis of required tax changes," Discussion Papers, Research Department of Statistics Norway 367, Research Department of Statistics Norway.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:inq:inqwps:ecineq2006-20. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Ana Lugo).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.