OECD and EUROMOD tax and benefit models 2400-ZU2WW083
Two models will be discussed in the course - The OECD Tax-Benefit model and EUROMOD (European Commission model). The OECD model uses only the hypothetical households approach. This approach involves creating a set of households with given characteristics, and then examining the effects of tax-benefit changes on them. The EUROMOD model makes possible to study tax and benefit solutions using such method and using representative data from the EU-SILC (Survey of Household Income and Living Conditions) survey. Part of the class will use the EUROMOD model.
1 Introduction. Objectives and methods of evaluating income policies; ex-ante vs. ex-post approach; criticism of the "representative consumer", history of the microsimulation approach in tax-benefit analysis, construction (architecture) of the tax-benefit model, sample analyses using microsimulation models.
2. OECD tax-benefit calculator and EUROMOD-JRC Interface. Examples of using both models.
3. EUROMOD - method of hypothetical families using the HHoT module (creation of farms with given characteristics and simulation of budget constraints) [presentation of the use of EUROMOD].
4. EUROMOD - analysis of representative data. Fiscal and redistributive costs of tax and benefit reforms [presentation of the use of EUROMOD].
Type of course
Course coordinators
Learning outcomes
Skills:
1. The student is able to prepare a data set on the basis of unit data provided by Eurostat.
2. The student is able to describe the variables in the data set.
3. The student is able to perform a statistical descriptive analysis of variables in the database.
4. The student is able to collect and work out the literature on the selected topic.
Symbols of the Ministry of Science and Higher Education: S1A_U01, S1A_U02, S1A_U03, S1A_U04, S1A_U09
Social competence:
1. The student understands the necessity of confronting the theory with empirical data
2. The student understands the limitations resulting from imperfect data sets
3. The student knows how to work in a team, is able to plan an empirical study and jointly prepare a report presenting the results of this research
MNiSW codes: S2A_K01, S2A_K02, S2A_K03
Assessment criteria
Written. An essay based on a selected paper using the OECD or EUROMOD model. Alternatively, conduct and describe a simulation using EUROMOD.
Bibliography
https://www.microsimulation.ac.uk/euromod/
https://euromod-web.jrc.ec.europa.eu/
https://euromod-web.jrc.ec.europa.eu/news-and-events/newsletters
Atkinson, Anthony B., F. Bourguignon, C. O'Donoghue, H. Sutherland, and F. Utili. \Microsimulation of Social Policy in the European Union : Case Study of a European Minimum Pension". Economica 69, no. 274 (2002) : 229-43.
Bourguignon, Francois, and Amedeo Spadaro. \Microsimulation as a Tool for Evaluating Redistribution
Policies". The Journal of Economic Inequality 4, no. 1 (April 2006) : 77-106.
Callan, Tim, and Holly Sutherland. \The Impact of Comparable Policies in European Countries :
Microsimulation Approaches". European Economic Review, 41, no. 3-5 (April 1997) : 627-33.
Levy, H., C. Lietz, and H. Sutherland (2007b). Swapping policies: Alternative tax-benefit strategies to support children in Austria, Spain and the UK. Journal of Social Policy 36,
625–647.
Levy, H., M. Matsaganis, and H. Sutherland (2013). Towards a European Union child basic income? Within and between country effects. International Journal of Microsimulation 6(1), 63–85.
Orcutt, Guy H. \A New Type of Socio-Economic System". The Review of Economics and Statistics 39, no. 2
(1957) : 116-23.
Orcutt, Guy H. Simulation of Economic Systems". The American Economic Review 50, no. 5 (1960) : 894-907.
Sutherland, Holly. \Constructing a Tax-Benefit Model : What Advice Can One Give ?" Review of Income and Wealth 37, no. 2 (June 1991) : 199-219.
Watts, Harold W. \Distinguished Fellow : An Appreciation of Guy Orcutt". The Journal of Economic Perspectives 5, no. 1 (1991) : 171-79.
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: