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 …

Existing tax schedules are often overly complex and characterized by discontinuities in the marginal tax burden. In … this paper we propose a class of progressive smooth functions to replace personal income tax schedules. These functions … depend only on three meaningful parameters, and avoid the drawbacks of defining tax schedules through various tax brackets …

investigate the effect of increases in the Value Added Tax on labor supply and the income distribution in Germany, which is … compensated by a revenue-neutral reduction in income-related taxes. Based on a dual data base and a microsimulation model of labor … supply behavior, we confirm a general regressive impact of such a tax shift in the short run. When accounting for labor …