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As SIMPL As That: Introducing a Tax-Benefit Microsimulation Model for Poland

Author

Listed:
  • Bargain, Olivier B.

    (Université de Bordeaux)

  • Morawski, Leszek

    (Warsaw University)

  • Myck, Michal

    (Centre for Economic Analysis, CenEA)

  • Socha, Mieczyslaw

    (Warsaw University)

Abstract

The Polish tax and benefit system is presented in the context of a recently developed microsimulation model, SIMPL. The model allows simulating direct taxes, social contributions and public benefits in Poland for the years 2003 and 2005. It is based on the Household Budgets Survey data (Badania Bud?etów Gospodarstw Domowych) from 2003 and 2005. The document describes details of the Polish tax and benefit system and the simulation assumptions which were necessary in modelling it in SIMPL. We provide information on the quality of the data used in the model and some details of the validation process through various robustness checks. Finally we provide examples of application of the model for analysis of effects of policy reforms.

Suggested Citation

  • Bargain, Olivier B. & Morawski, Leszek & Myck, Michal & Socha, Mieczyslaw, 2007. "As SIMPL As That: Introducing a Tax-Benefit Microsimulation Model for Poland," IZA Discussion Papers 2988, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2988
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    References listed on IDEAS

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    1. Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March.
    2. Michael P. Keane & Eswar S. Prasad, 2002. "Inequality, Transfers, And Growth: New Evidence From The Economic Transition In Poland," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 324-341, May.
    3. Peter Haan & Michal Myck, 2007. "Apply with Caution: Introducing UK-Style In-Work Support in Germany," Fiscal Studies, Institute for Fiscal Studies, vol. 28(1), pages 43-72, March.
    4. Tom Clark & Andrew Dilnot & Alissa Goodman & Michal Myck, 2002. "Taxes and Transfers 1997--2001," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 18(2), pages 187-201, June.
    5. Haan, Peter & Myck, Michal, 2007. "Safety Net Still in Transition: Labour Market Incentive Effects of Extending Social Support in Poland," IZA Discussion Papers 3157, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Michal Myck & Mateusz Najsztub, 2015. "Data and Model Cross-validation to Improve Accuracy of Microsimulation Results: Estimates for the Polish Household Budget Survey," International Journal of Microsimulation, International Microsimulation Association, vol. 8(1), pages 33-66.
    2. Michał Brzeziński & Michał Myck & Mateusz Najsztub, 2019. "Reevaluating distributional consequences of the transition to market economy in Poland: new results from combined household survey and tax return data," Working Papers 2019-18, Faculty of Economic Sciences, University of Warsaw.
    3. Peter Haan & Michał Myck, 2012. "Multi-family households in a labour supply model: a calibration method with application to Poland," Applied Economics, Taylor & Francis Journals, vol. 44(22), pages 2907-2919, August.
    4. Morawski, Leszek & Myck, Michal, 2010. "'Klin'-ing up: Effects of Polish tax reforms on those in and on those out," Labour Economics, Elsevier, vol. 17(3), pages 556-566, June.
    5. Michal Myck & Anna Kurowska & Michal Kundera, 2013. "Financial support for families with children and its trade-offs: balancing redistribution and parental work incentives," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 13(2), pages 59-83, December.
    6. Marta Lachowska & Michał Myck, 2018. "The Effect of Public Pension Wealth on Saving and Expenditure," American Economic Journal: Economic Policy, American Economic Association, vol. 10(3), pages 284-308, August.
    7. Leszek Morawski, 2009. "Efekty wprowadzenia dwóch stóp w podatku dochodowym od osób fizycznych w 2009 roku," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 7-8, pages 37-58.
    8. Haan, Peter & Myck, Michal, 2007. "Safety Net Still in Transition: Labour Market Incentive Effects of Extending Social Support in Poland," IZA Discussion Papers 3157, Institute of Labor Economics (IZA).
    9. Ewa Aksman, 2010. "Znaczenie podatku netto w Polsce dla zróżnicowania dochodów," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1-2, pages 35-50.
    10. Leszek Morawski & Aneta Semeniuk, 2013. "Zakres ubóstwa a reformy podatkowo-świadczeniowe w latach 2006-2010," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 21-40.
    11. Tyrowicz, Joanna, 2009. "When Eastern Labour Markets Enter Western Europe CEECs. Labour Market Institutions upon Euro Zone Accession," MPRA Paper 15045, University Library of Munich, Germany.
    12. repec:diw:diwwpp:dp1315 is not listed on IDEAS
    13. Brzezinski, Michal & Najsztub, Mateusz, 2021. "The impact of "Family 500+" programme on household incomes, poverty and inequality," SocArXiv vkr6h, Center for Open Science.
    14. Konopczak, Karolina & Skibicki, Jakub, 2012. "Mikrosymulacyjny model podatkowo-zasiłkowy Ministerstwa Finansów – dokumentacja," MF Working Papers 33, Ministry of Finance in Poland.
    15. Brzezinski, Michal & Myck, Michał & Najsztub, Mateusz, 2022. "Sharing the gains of transition: Evaluating changes in income inequality and redistribution in Poland using combined survey and tax return data," European Journal of Political Economy, Elsevier, vol. 73(C).

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    More about this item

    Keywords

    income distribution; tax and benefit systems; microsimulation; Poland;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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