We develop a behavioural micro simulation model (LuxTaxBen) that contains very precise information on income tax rules … model has been built specifically for analysing the Luxembourgish tax-transfer system whereby one can generate disposable … conditional on labour supply while income tax rules and the various welfare benefit-levels are complicated functions of earned and …

This paper studies the design of tax systems that implement a planner's second-best allocation in a market economy. An … example shows that the widely used Mirrleesian (1976) tax system cannot implement all incentive-compatible allocations … one tax system. However, this tax system is often undesirable since it severely restricts the choice space of agents in …

This paper describes IZAΨMOD, the policy microsimulation model of the Institute for the Study of Labor (IZA). The model …-employee dataset LIAB. IZAΨMOD consists of three components: First, a static module simulates the effects of a tax-benefit reform on … most other microsimulation tools. A demand module takes into account possible restrictions of labor demand and identifies …

base for future microsimulation analysis of simultaneous direct tax, indirect tax and welfare reform. …Comprehensive modelling of the impact of taxes and tax policy options requires data on the impact at micro-level of … not suitable for use in detailed modelling of the direct tax and welfare system. This makes approaches which impute …

[psi]MOD ; microsimulation ; tax and benefit systems ; labor demand …This paper describes IZA[psi]MOD, the policy microsimulation model of the Institute for the Study of Labor (IZA). The …-employee dataset LIAB. IZA[psi]MOD consists of three components: First, a static module simulates the effects of a tax reform on the …

components using yearly UK data covering 1977-2018. We examine cash and in-kind benefits, and direct and indirect taxes. In … benefits are largely associated with cyclical changes in average benefit rates. In contrast, trends in the redistributive … effects of direct and indirect taxes are mostly associated with changes in progressivity. For in-kind benefits, changes in the …

; welfare benefits ; tax credits ; incentive effects …In this paper we provide an overview of the literature relating labour supply to taxes and welfare benefits with a … free choice over their hours of work. We then consider fixed costs of work, the complications introduced by the benefits …

We use a behavioural microsimulation model embedded in a numerical optimization procedure in order to identify optimal … (social welfare maximizing) tax-transfer rules. We consider the class of tax-transfer rules consisting of a universal basic … income and a tax defined by a 4th degree polynomial. The rule is applied to total taxable household income. A …

Gender differences in voting patterns and political attitudes towards redistribution are well-documented. The … experiments on preferences for redistribution conducted in the U.S. and several European countries to disentangle these potential … mechanisms. We find that when choosing to redistribute income as a disinterested observer, women choose higher tax rates than men …

give specific attention to the choice of the bandwidth used to define "close equals" in terms of pre-tax income. We also …