While doing so, the latest group out of income tax devices is discussed, therefore the definitions out of nonexempt earnings and you will revenues in the context of energetic taxation liabilities is actually explained, due to the fact applied from the simulations.
step three.step 1 Simulations which have EUROMOD
We use the Western european taxation and you will benefit microsimulation model, EUROMOD. EUROMOD has been designed to calculate income, contributory and you will setting-examined pros, societal protection efforts as well as income tax liabilities at the domestic height for everyone places in the European union. Given a number of socio-demographics regarding the hidden research, this permits the consumer in order to make distributional analyses out of reforms to the fresh income tax and benefit solutions and you will deal with contrasting inside a cross-country environment.
To own an over-all inclusion in order to EUROMOD, discover Sutherland and you can Figari (2013). EUROMOD is normally utilized for mix-country analyses of reforms towards tax and work with systems, particularly in terms of relevant distributional consequences, bonuses having work also provide (e.g. Immervoll, Kleven, Kreiner, Saez, 2007), and you can financial outcomes (e.grams. Continue reading « Which section raises the fresh new microsimulation model and study used in our very own data »