Eur 3: A Prototype European Tax-Benefit Model
A prototype multicoutry static microsimulation model has benn built to simulate tax and social benefits in a number of European countries. This part of a prepatory study funded by the the EC to examine the possibility of builiding a comprehensive EU wide integrated microsimulation model. The countries considered in the first stage of the project are: France, Italy and the United Kingdom. A large effort was made in integrating the data sets and modelling the policy instruments in a comparative structure. This paper describes what characterizes such a model compared with existing national models and outlines some of the issues encountered. A number of policy experiments were carried out, including the introduction of national Basic Incomes, a Europe- wide child support reform, and a reduction in social insurance contributions for the low paid. The results shed light on strong cross-national differences in existing fiscal systems and relative income distributions in the three countries.
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|Date of creation:||1997|
|Publication status:||Published in A. Gupta et V. Kapur (eds), Microsimulation in Government Policy and Forecasting, North-Holland, 2000, pp. 173-201|
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