IDEAS home Printed from https://ideas.repec.org/p/ipt/taxref/201905.html
   My bibliography  Save this paper

The Hypothetical Household Tool (HHoT) in EUROMOD: a new instrument for comparative research on tax-benefit policies in Europe

Author

Listed:
  • Tine Hufkens

    (European Commission - JRC)

  • Tim Goedeme
  • Katrin Gasior
  • Chrysa Leventi
  • Kostas Manios
  • Olga Rastrigina
  • Pasquale Recchia
  • Holly Sutherland
  • Natascha Van Mechelen
  • Gerlinde Verbist

Abstract

This paper introduces the Hypothetical Household Tool (HHoT), a new extension of EUROMOD, the tax-benefit microsimulation model for the European Union. With HHoT, users can easily create their own hypothetical data, which enables them to better understand how policies work for households with specific characteristics. The tool creates unique possibilities for an enhanced analysis of taxes and social benefits in Europe by integrating results from microsimulations and hypothetical household simulations in a single modelling framework. Furthermore, the flexibility of HHoT facilitates an advanced use of hypothetical household simulations to create new comparative policy indicators in the context of multi-country and longitudinal analyses. In this paper, we highlight the main features of HHoT, its strengths and limitations, and illustrate how it can be used for comparative policy purposes.

Suggested Citation

  • Tine Hufkens & Tim Goedeme & Katrin Gasior & Chrysa Leventi & Kostas Manios & Olga Rastrigina & Pasquale Recchia & Holly Sutherland & Natascha Van Mechelen & Gerlinde Verbist, 2019. "The Hypothetical Household Tool (HHoT) in EUROMOD: a new instrument for comparative research on tax-benefit policies in Europe," JRC Working Papers on Taxation & Structural Reforms 2019-05, Joint Research Centre.
  • Handle: RePEc:ipt:taxref:201905
    as

    Download full text from publisher

    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC116275
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. H. Xavier Jara & Alberto Tumino, 2013. "Tax-benefit systems, income distribution and work incentives in the European Union," International Journal of Microsimulation, International Microsimulation Association, vol. 1(6), pages 27-62.
    2. Tim Goedemé & Tess Penne & Tine Hufkens & Alexandros Karakitsios & Anikó Bernát & Bori Simonovits & Elena Carillo Alvarez & Eleni Kanavitsa & Irene Cussó Parcerisas & Jordi Riera Romaní & Lauri Mäkine, 2017. "What Does It Mean To Live on the Poverty Threshold? Lessons From Reference Budgets," Working Papers 1707, Herman Deleeck Centre for Social Policy, University of Antwerp.
    3. Herwig Immervoll & Pascal Marianna & Marco Mira d'Ercole, 2004. "Benefit Coverage Rates and Household Typologies: Scope and Limitations of Tax-Benefit Indicators," OECD Social, Employment and Migration Working Papers 20, OECD Publishing.
    4. Natascha Van Mechelen & Sarah Marchal & Tim Goedemé & Ive Marx & Bea Cantillon, 2011. "The CSB-Minimum Income Protection Indicators dataset (CSB-MIPI)," Working Papers 1105, Herman Deleeck Centre for Social Policy, University of Antwerp.
    5. Gasior, Katrin & Recchia, Pasquale, 2018. "The use of hypothetical household data for policy learning – EUROMOD HHoT baseline indicators," EUROMOD Working Papers EM6/18, EUROMOD at the Institute for Social and Economic Research.
    6. 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.
    7. Tim Goedemé, 2013. "How much Confidence can we have in EU-SILC? Complex Sample Designs and the Standard Error of the Europe 2020 Poverty Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(1), pages 89-110, January.
    8. Marchal, Sarah & Goedemé, Tim & Siöland, Linus, 2019. "Using HHoT to generate institutional minimum income protection indicators," EUROMOD Working Papers EM4/19, EUROMOD at the Institute for Social and Economic Research.
    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


    Cited by:

    1. Vincent Vergnat, 2021. "Tax-benefit policies to fight poverty among young adults in Europe," LISER Working Paper Series 2021-09, Luxembourg Institute of Socio-Economic Research (LISER).
    2. Michael Christl & Silvia Poli, 2021. "Trapped in inactivity? Social assistance and labour supply in Austria," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(3), pages 661-696, August.
    3. Penne, Tess & Goedemé, Tim, 2021. "Can low-income households afford a healthy diet? Insufficient income as a driver of food insecurity in Europe," Food Policy, Elsevier, vol. 99(C).
    4. Elise Aerts; & Ive Marx; & Gerlinde Verbist;, 2023. "Not That Basic: How Level, Design and Context Matter for the Redistributive Outcomes of Universal Basic Income," Working Papers 2303, Herman Deleeck Centre for Social Policy, University of Antwerp.
    5. Adeline Otto & Alzbeta Bártová & Wim Van Lancker, 2021. "Measuring the Generosity of Parental Leave Policies," Social Inclusion, Cogitatio Press, vol. 9(2), pages 238-249.
    6. Bea Cantillon;, 2022. "The Tragic Decline of the Poverty Reducing Capacity of the Welfare State: Lessons from Two Decades of Social Policy Research," Working Papers 2201, Herman Deleeck Centre for Social Policy, University of Antwerp.
    7. Aerts, Elise & Marx, Ive & Verbist, Gerlinde, 2023. "Not That Basic: How Level, Design and Context Matter for the Redistributive Outcomes of Universal Basic Income," IZA Discussion Papers 15952, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. H. Xavier Jara & Katrin Gasior & Mattia Makovec, 2020. "Work Incentives at the Extensive and Intensive Margin in Europe: The Role of Taxes, Benefits and Population Characteristics," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(2), pages 705-778, November.
    2. Sarah Marchal & Linus Sióland, 2019. "A safety net that holds? Tracking minimum income protection adequacy for the elderly, the working and the non-working of active age," Working Papers 1909, Herman Deleeck Centre for Social Policy, University of Antwerp.
    3. Bea Cantillon & Sarah Marchal & Chris Luigjes, 2015. "Decent incomes for the poor: which role for Europe?," ImPRovE Working Papers 15/20, Herman Deleeck Centre for Social Policy, University of Antwerp.
    4. Gasior, Katrin & Recchia, Pasquale, 2018. "The use of hypothetical household data for policy learning – EUROMOD HHoT baseline indicators," EUROMOD Working Papers EM6/18, EUROMOD at the Institute for Social and Economic Research.
    5. Goedemé, Tim & Decerf, Benoit & Van den Bosch, Karel, 2020. "A new poverty indicator for Europe: the extended headcount ratio," INET Oxford Working Papers 2020-26, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    6. Bea Cantillon & Sarah Marchal & Chris Luigjes, 2017. "Decent Incomes for the Poor: Which Role for Europe?," Journal of Common Market Studies, Wiley Blackwell, vol. 55(2), pages 240-256, March.
    7. Kenneth Nelson & Daniel Fredriksson & Tomas Korpi & Walter Korpi & Joakim Palme & Ola Sjöberg, 2020. "The Social Policy Indicators (SPIN) database," International Journal of Social Welfare, John Wiley & Sons, vol. 29(3), pages 285-289, July.
    8. Bea Cantillon & Wim Van Lancker, 2011. "Solidarity and reciprocity in the social investment state: what can be learned from the case of Flemish school allowances and truancy?," Working Papers 1109, Herman Deleeck Centre for Social Policy, University of Antwerp.
    9. Maria Iacovou, 2013. "The relationship between incomes and living arrangements: variation between countries, over the life course, and over time," ImPRovE Working Papers 13/15, Herman Deleeck Centre for Social Policy, University of Antwerp.
    10. Xavier Jara & David Rodríguez, 2019. "Financial disincentives to formal work: Evidence from Ecuador and Colombia," WIDER Working Paper Series wp-2019-14, World Institute for Development Economic Research (UNU-WIDER).
    11. Vítor João Pereira Domingues Martinho, 2019. "Social Justice: Disparities in Average Earnings across Portuguese Municipalities," Social Sciences, MDPI, vol. 8(4), pages 1-17, April.
    12. Orsetta Causa & Alain de Serres & Nicolas Ruiz, 2015. "Can pro-growth policies lift all boats?: An analysis based on household disposable income," OECD Journal: Economic Studies, OECD Publishing, vol. 2015(1), pages 227-268.
    13. Gabriele Ballarino & Michela Braga & Massimiliano Bratti & Daniele Checchi & Antonio Filippin & Carlo V. Fiorio & Marco Leonardi & Elena Meschi & Francesco Scervini, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Italy," GINI Country Reports italy, AIAS, Amsterdam Institute for Advanced Labour Studies.
    14. Herwig Immervoll & Stefano Scarpetta, 2012. "Activation and employment support policies in OECD countries. An overview of current approaches," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-20, December.
    15. Timm Bönke & Carsten Schröder, 2014. "European-Wide Inequality in Times of the Financial Crisis," Journal of Income Distribution, Ad libros publications inc., vol. 23(3), pages 7-34, November.
    16. Tim Goedemé & Diego Collado & Leen Meeusen, 2014. "Mountains on the move: recent trends in national and EU-wide income dynamics in old and new EU Member States," ImPRovE Working Papers 14/05, Herman Deleeck Centre for Social Policy, University of Antwerp.
    17. Andrei, Jean & Saša, Stefanovic, 2011. "Especially vulnerable groups in EU and Serbian labor market," MPRA Paper 35285, University Library of Munich, Germany, revised 17 Oct 2011.
    18. Susan Namirembe Kavuma & Christine Byaruhanga & Nicholas Musoke & Patrick Loke & Michael Noble & Gemma Wright, 2020. "An analysis of the distributional impact of excise duty in Uganda using a tax-benefit microsimulation model," WIDER Working Paper Series wp-2020-70, World Institute for Development Economic Research (UNU-WIDER).
    19. Sabina Alkire, Mauricio Apablaza, 2016. "Multidimensional Poverty in Europe 2006-2012: Illustrating a Methodology," OPHI Working Papers 74, Queen Elizabeth House, University of Oxford.
    20. Angela Daley & Thesia Garner & Shelley Phipps & Eva Sierminska, 2020. "Differences across countries and time in household expenditure patterns: implications for the estimation of equivalence scales," International Review of Applied Economics, Taylor & Francis Journals, vol. 34(6), pages 734-757, November.

    More about this item

    Keywords

    HHoT; microsimulation model; hypothetical household simulations; European Union;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ipt:taxref:201905. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Publication Officer (email available below). General contact details of provider: https://edirc.repec.org/data/ipjrces.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.