A microeconometric model for analysing efficiency and distributional effects of tax reforms: a review of results for Italy and Norwayƒx
Abstract
In this contribution we illustrate various applications of a behavioural microsimulation model that we have been developing during the last years. Behavioural models are complex and costly tools to develop, use and maintain, but also very powerful ones as we wish to show through the examples that follow. In Section 1 we present the main features of the microeconometric model. In Section 2 we comment upon the labour supply elasticities implied by the estimates. In Section 3 we illustrate a simulation of the behavioural and welfare effects of some tax reform proposals. In Section 4 we report on an exercise where we look for the optimal tax system. In Section 5 we report on an on-going project aimed at integrating the microeconometric model and a Computable General Equilibrium model. Last, in Section 6, we show an out-of-sample test of the model, where we compare the predictions of a model estimated on 1994 data to the observed effects of a reform in 2001.Download Info
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Paper provided by EconWPA in its series Public Economics with number 0501002.Length: 19 pages
Date of creation: 07 Jan 2005
Date of revision:
Handle: RePEc:wpa:wuwppe:0501002
Note: Type of Document - pdf; pages: 19. PDF document
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Related research
Keywords: Tax reforms; Microeconometric models; Micro-Macro models;Find related papers by JEL classification:
- D6 - Microeconomics - - Welfare Economics
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- H - Public Economics
This paper has been announced in the following NEP Reports:
- NEP-ACC-2005-01-16 (Accounting & Auditing)
- NEP-ALL-2005-01-16 (All new papers)
- NEP-MIC-2005-01-16 (Microeconomics)
References
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- Aaberge, Rolf & Colombino, Ugo & Strøm, Steinar, 2003.
"Do More Equal Slices Shrink the Cake? An Empirical Investigation of Tax-Transfer Reform Proposals in Italy,"
Memorandum
37/2003, Oslo University, Department of Economics.
- Rolf Aaberge & Ugo Colombino & Steinar Strøm, 2004. "Do more equal slices shrink the cake? An empirical investigation of tax-transfer reform proposals in Italy," Journal of Population Economics, Springer, vol. 17(4), pages 767-785, December.
- 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., vol. 14(4), pages 403-22, July-Aug..
- Ugo Colombino & Steinar Strøm & Rolf Aaberge, 2000. "Labor supply responses and welfare effects from replacing current tax rules by a flat tax: Empirical evidence from Italy, Norway and Sweden," Journal of Population Economics, Springer, vol. 13(4), pages 595-621.
- Rolf Aaberge & Ugo Colombino & Steinar Strøm & Tom Wennemo, 2005. "Joint Labour Supply of Married Couples: Efficiency and Distribution Effects of Tax and Labour Market Reforms," Labor and Demography 0501004, EconWPA.
- 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,"
CHILD Working Papers
wp06_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
- 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 367, Research Department of Statistics Norway.
- Rolf Aaberge & Ugo Colombino & John E. Roemer, 2001. "Equality of Opportunity versus Equality of Outcome in Analysing Optimal Income Taxation Empirical Evidence based on Italian Data," Discussion Papers 307, Research Department of Statistics Norway.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Isilda Mara & Edlira Narazani, 2011. "The Effects of Flat Tax on Inequality and Informal Employment: The Case of Albania," The wiiw Balkan Observatory Working Papers 094, The Vienna Institute for International Economic Studies, wiiw.
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