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 …

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 …

how the tax-transfer rules should be reformed to cope with those changes. While the prevailing response has consisted of … simplicity and universality. In this paper we take the latter route. Using a combination of behavioural microsimulation and … numerical optimization, we look for a social welfare optimal tax-transfer rule within a flexible class where total household …

cases various versions of the Negative Income Tax: Conditional Basis Income, Unconditional Basic Income, In-Work Benefits … procedure that simulates the households' choices under given tax-transfer rules is then embedded in a constrained optimization …'s social welfare function. The tax-transfer rules considered as candidates are members of a class that includes as special …

tax-transfer rules while accounting for equilibrium constraints and to evaluate the effects of exogenous labour demand …