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Documentation IZAΨMOD v3.0: The IZA Policy Simulation Model

Listed author(s):
  • Loeffler, Max

    ()

    (ZEW Mannheim)

  • Peichl, Andreas

    ()

    (ZEW Mannheim)

  • Pestel, Nico

    ()

    (IZA)

  • Siegloch, Sebastian

    ()

    (University of Mannheim)

  • Sommer, Eric

    ()

    (IZA)

This paper describes IZAΨMOD, the policy microsimulation model of the Institute for the Study of Labor (IZA). The model uses household microdata from the German Socio-Economic Panel Study and firm data from the German linked employer-employee dataset LIAB. IZAΨMOD consists of three components: First, a static module simulates the effects of a tax-benefit reform on the budget of the individual household. This includes taxes on income and consumption, social security contributions, public transfers. Secondly, behavioral labor supply responses are estimated. The third component distinguishes our model from most other microsimulation tools. A demand module takes into account possible restrictions of labor demand and identifies the partial equilibrium of the labor market after the supply reactions.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8553.

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Length: 43 pages
Date of creation: Oct 2014
Handle: RePEc:iza:izadps:dp8553
Contact details of provider: Postal:
IZA, P.O. Box 7240, D-53072 Bonn, Germany

Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information: Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
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