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In-depth analysis of tax reforms using the EUROMOD microsimulation model

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Abstract

In the aftermath of the financial and sovereign debt crisis, the need for a better understanding of the fiscal and equity implications of national tax policy reforms is greater than ever. National fiscal policies have a significant share in paving the way for economic recovery, fiscal consolidation and reducing looming inequality problems. The present work sets out a consistent framework for the in-depth country analyses of tax reforms using EUROMOD performed by the European Commission services in the context of the European Semester. Three examples of policy analysis are presented with the focus being on the provision of correct inferences alongside the typically analysed estimates and indicators.

Suggested Citation

  • Fidel Picos & Marie-Luise Schmitz, 2016. "In-depth analysis of tax reforms using the EUROMOD microsimulation model," JRC Working Papers on Taxation & Structural Reforms 2016-06, Joint Research Centre.
    • Handle: RePEc:ipt:taxref:201606
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC104261
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    References listed on IDEAS

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    1. Holly Sutherland & Francesco Figari, 2013. "EUROMOD: the European Union tax-benefit microsimulation model," International Journal of Microsimulation, International Microsimulation Association, vol. 1(6), pages 4-26.
    2. Tim Goedemé & Karel Van den Bosch & Lina Salanauskaite & Gerlinde Verbist, 2013. "Testing the Statistical Significance of Microsimulation Results: A Plea," International Journal of Microsimulation, International Microsimulation Association, vol. 6(3), pages 50-77.
    3. Tim Goedemé & Karel Van den Bosch & Lina Salanauskaite & Gerlinde Verbist, 2013. "Testing the Statistical Significance of Microsimulation Results: Often Easier than You Think. A Technical Note," ImPRovE Working Papers 13/10, Herman Deleeck Centre for Social Policy, University of Antwerp.
    4. Kaminska, Olena & Iacovou, Maria & Levy, Horacio, 2012. "Using EU-SILC data for cross-national analysis: strengths, problems and recommendations," ISER Working Paper Series 2012-03, Institute for Social and Economic Research.
    5. 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, vol. 53(3), pages 327-365, March.
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    1. Michael Christl & Silvia De Poli & Janos Varga, 2022. "Reducing the income tax burden for households with children: an assessment of the child tax credit reform in Austria," Fiscal Studies, John Wiley & Sons, vol. 43(2), pages 151-177, June.
    2. Leventi, Chrysa & Katsimi, Margarita & Tsakloglou, Panos, 2022. "Going regional: distributional effect of taxes and transfers in six EU countries and the UK," Centre for Microsimulation and Policy Analysis Working Paper Series CEMPA4/22, Centre for Microsimulation and Policy Analysis at the Institute for Social and Economic Research.

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    More about this item

    Keywords

    Fiscal policy analysis; European Semester; survey data; microsimulation; variance estimation;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

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