A Short Introduction to EUROMOD: an Integrated European Tax-Benefit Model

Lietz, Christine; Mantovani, Daniela

doi:10.1016/s0147-9121(06)25001-5

“…Microsimulation models are the only means to disentangle the poverty impact of these interlinked factors. This paper uses EUROMOD -the static tax-benefit model of the EU (Sutherland, 2001, Lietz and Mantovani, 2007, Sutherland et al, 2008, Figari and Sutherland, 2013 and RUSMOD -the static tax-benefit model for Russia which is fully compatible with EUROMOD (Popova, 2013a). Static microsimulation models, such as EUROMOD and RUSMOD, quantify the consequences at the micro-level of changes in taxbenefit policies, given that the characteristics of the underlying population remain constant, and vice versa (Immervoll and O'Donoghue, 2009).…”

Section: Methods and Datamentioning

confidence: 99%

Distributional impacts of cash allowances for children: A microsimulation analysis for Russia and Europe

Popova

¹

2016

Journal of European Social Policy

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This paper analyses programmes of cash allowances for children and compares their effectiveness in combating child poverty in Russia and four EU countries representing alternative family policy models -Sweden, Germany, Belgium and the United Kingdom.Using microsimulation models, this paper estimates the potential gains if the Russian system were re-designed along the policy parameters of these countries and vice versa. The results confirm that the poverty impact of the program design is smaller than that of the level of spending. Other conditions being equal, the best distributional outcomes for children are achieved by applying the mix of universal and means-tested child benefits, such as those employed by the UK and Belgium. At the same time, the Russian design of child allowances does not appear to be less effective in terms of its impact on child poverty when transferred to European countries in place of their current arrangements.

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“…The European EUROMOD microsimulation model was developed and is maintained by ISER (Institute for Social and Economic Research) at the University of Essex, in collaboration with the national teams. For more information on Euromod, see Figari and Sutherland (2013), Sutherland (2007) and Lietz & Mantovani (2006), or visit http://www.iser.essex.ac.uk/euromod/.…”

mentioning

confidence: 99%

A Bird's Eye View on 20 Years of Tax-Benefit Reforms in Belgium

Decoster¹,

Perelman

²

,

Vandelannoote

³

et al. 2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractBelgium has seen major changes in its tax-benefit system over the past twenty years. These changes have, to a large extent, co-determined the evolution of disposable incomes of Belgian households on one hand, and their incentives to work on the other. In this paper we assess equity and efficiency aspects of changes in tax-benefit policies over the full course of 1992-2012. By simulating effects of current and past tax-benefit policies using the microsimulation model MEFISTO-EUROMOD, we summarize the shifts in policy orientation over this period using two summary measures of redistribution and work incentives. Our three main findings are: 1) the changes in the tax-benefit system have to a large extent been pro-poor, and redistribution has been increased; 2) the introduction of an earned income tax credit and the lowering of personal income taxes has contributed to improve work incentives, but this effect was partially eroded by an increase in unemployment benefits since 2000; 3) the results crucially depend on whether one chooses as 'no policy change' counterfactual indexation with inflation or indexation with nominal wage growth.JEL: C81, H21, H41, J20

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“…It simulates direct tax liabilities, social insurance contributions and benefit entitlements for the households and their members. It is a static model, appropriate for the analysis of short-term effects and designed to inform many types of analysis (Sutherland, 2007;Lietz and Mantovani, 2007). In the context of the present paper, using EUROMOD allows us to decompose the components of disposable income in a comparable manner, and to compare the size and distributional effects of these components with non cash benefits.…”

Section: Euromodmentioning

confidence: 99%

The distributional impact of in‐kind public benefits in European countries

Paulus

¹

,

Sutherland

²

,

Τσακλόγλου

³

2010

J Policy Anal Manage

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu International comparisons of inequality based on measures of disposable income may not be valid if the size and incidence of publicly-provided in kind benefits differ across the countries considered. The benefits that are financed by taxation in one country may need to be purchased out of disposable income in another. We estimate the size and incidence of in kind or "non cash" benefits from public housing subsidies, education and health care for five European countries using comparable methods and data. Inequality in the augmented income measure is dramatically lower than in disposable income, with the effects of the three components varying in importance across countries. Adapting equivalence scales to take proper account of differences in needs for health care and education across population members reduces the scale of the effect, but does not eliminate it. Terms of use: Documents in EconStor may D I S C U S S I O N P A P E R S E R I E S NON-TECHNICAL SUMMARYThe usual practice when performing inter-temporal or cross-country comparisons of inequality and poverty is to rely on distributions of disposable income. This practice may be misleading since an individual's command over resources is determined not only by her spending power over commodities she can buy in the market but also by resources available to her through the in kind provisions of the welfare state as well as private non cash incomes. The contribution of cash and non-cash income components to total (augmented) income is likely to vary considerably both across time and across countries, thus introducing biases in the corresponding comparisons.The present paper provides estimates of the size and incidence of three publicly provided services (housing, education and health care) in five European countries (Belgium, Germany, Greece, Italy and the UK). Cross-country differences are considerable. In the five countries examined in the paper, the value of their services is equal to 17.5%-26.7% of total household disposable income. Yet, in all countries, the corresponding in kind transfers appear to reduced measured inequality and (relative) poverty very substantially. The effect is more pronounced in households with children or elderly persons.Nevertheless, doubts are raised regarding the appropriateness of static incidence analysisthat is standard practice in the corresponding literature -without adjusting the equivalence scales for the extra needs of households for education and ...

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A Short Introduction to EUROMOD: an Integrated European Tax-Benefit Model

Cited by 19 publications

References 2 publications

Distributional impacts of cash allowances for children: A microsimulation analysis for Russia and Europe

Distributional impacts of cash allowances for children: A microsimulation analysis for Russia and Europe

A Bird's Eye View on 20 Years of Tax-Benefit Reforms in Belgium

The distributional impact of in‐kind public benefits in European countries

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