This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Imputation of Gross Amounts from Net Incomes in Household Surveys. An Application using EUROMOD

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Herwig Immervoll (University of Cambridge and European Centre for Social Welfare Policy and Research - Vienna)
Cathal O'Donoghue (University of Cambridge and National University of Ireland - Galway)

Additional information is available for the following registered author(s):

Abstract

Household micro-datasets often do not contain information on gross incomes. We present an algorithm which exploits the tax- and contribution rules built into tax-benefit models to convert net income information into gross amounts. Using EUROMOD, a multi-country taxbenefit model covering all fifteen countries of the European Union, net-to-gross conversions can be performed for a large number of countries utilising existing models of relevant fiscal rules. The algorithm takes into account all relevant complexities of tax- and contribution rules and can, thus, produce much more accurate results than statistical models which estimate netto- gross ratios using only a few explanatory variables. Among the features of the algorithm is the ability to distinguish between different individuals in the same household. Even if individuals’ incomes are taxed jointly, the algorithm is able to approximate separate net-togross factors for individuals in the same fiscal unit. This is possible since EUROMOD can accurately assign people to appropriate fiscal units. In addition, it is in certain cases possible to produce different net-to-gross ratios for different income components. We undertake a case study to illustrate the importance of deriving separate net-to-gross factors for different individuals within a household/fiscal unit and for different income sources of the same individual.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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://129.3.20.41/eps/comp/papers/0302/0302001.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by EconWPA in its series Computational Economics with number 0302001.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 07 Feb 2003
Date of revision:
Handle: RePEc:wpa:wuwpco:0302001

Note: Type of Document - ; figures: included. EUROMOD web-site:
Contact details of provider:
Web page: http://129.3.20.41

For technical questions regarding this item, or to correct its listing, contact: (EconWPA).

Related research
Keywords: Microsimulation; Imputation; Income; Net/Gross;

Other versions of this item:

Find related papers by JEL classification:
C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data
C63 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computational Techniques

This paper has been announced in the following NEP Reports:

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.:
  1. Julian McCrae, 1999. "The Development and Uses of Tax and Benefit Simulation Models," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 2(1), January. [Downloadable!]
  2. Sutherland H, 2001. "Final Report Euromod: An Integrated European Benefit Tax Model," EUROMOD Working Papers EM9/01, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
  3. Immervoll H & O'donoghue C & Sutherland H, 1999. "An Introduction To Euromod," EUROMOD Working Papers EM0/99, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
Full references

Cited by:
(explanations, 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.)

  1. Immervoll H, 2002. "The Distribution Of Average And Marginal Effective Tax Rates In European Union Member States," EUROMOD Working Papers EM2/02, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
  2. Ahmed, Vaqar & O'Donoghue, Cathal, 2009. "Redistributive effect of personal income taxation in Pakistan," MPRA Paper 16700, University Library of Munich, Germany. [Downloadable!]
  3. Herwig Immervoll, 2003. "The Distribution Of Average And Marginal Effective Tax Rates In European Union Member States," Public Economics 0302005, EconWPA. [Downloadable!]
  4. Mantovani D & Papadopoulos F & Sutherland H & Tsakloglou P, 2005. "Pension Incomes In The European Union: Policy Reform Strategies In Comparative Perspective," EUROMOD Working Papers EM5/05, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
    Other versions:
  5. Immervoll H, 2004. "Average And Marginal Effective Tax Rates Facing Workers In The Eu. A Micro Level Analysis Of Levels, Distributions And Driving Factors (Revised Version Of Em2/02)," EUROMOD Working Papers EM6/04, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
  6. Herwig Immervoll & Cathal O'Donoghue, 2003. "Towards A Multi-Purpose Framework For Tax-Benefit Microsimulation," Computational Economics 0302002, EconWPA. [Downloadable!]
    Other versions:
  7. Daniela Mantovani & Fotis Papadopoulos & Holly Sutherland & Panos Tsakloglou, 2005. "Pension Incomes In The European Union: Policy Reform Strategies In Comparative Perspective," Center for the Analysis of Public Policies (CAPP) 0507, Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica. [Downloadable!]
  8. Verbist G, 2005. "Replacement Incomes And Taxes: A Distributional Analysis For The Eu 15 Countries," EUROMOD Working Papers EM2/05, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
  9. Sutherland H, 2001. "Final Report Euromod: An Integrated European Benefit Tax Model," EUROMOD Working Papers EM9/01, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
  10. Mantovani D, 2003. "Social Indicators And Other Income Statistics Using The Euromod Baseline: A Comparison With Eurostat And National Statistics," EUROMOD Working Papers EM1/03, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
  11. Verbist G, 2004. "Redistributive Effect And Progressivity Of Taxes An International Comparison Across The Eu Using Euromod," EUROMOD Working Papers EM5/04, EUROMOD at the Institute for Social and Economic Research. [Downloadable!]
Statistics
Access and download statistics

Did you know? IDEAS was sponsored from 1997 to 2002 by the Université du Québec à Montréal.

This page was last updated on 2009-10-17.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.