Cross-validating administrative and survey datasets through microsimulation and the assessment of a tax reform in Luxembourg

Philippe Liegeois, Frédéric Berger, Nizamul Islam and Raymond Wagener

No 2009-16, IRISS Working Paper Series from IRISS at CEPS/INSTEAD

Abstract: Using EUROMOD, we cross-validate two types of micro-data presently available in the Grand-Duchy of Luxembourg, administrative data on one hand and survey data on the other hand. While administrative data, extracted from the recently implemented Social Security Data Warehouse, contain information of the whole population of Luxembourg (449,000 observations) in 2003, survey data, extracted from the Luxembourg household panel PSELL3/EU-SILC for 2004 (incomes from 2003), is a representative sample of around 3,600 private households (9,800 individuals) living in Luxembourg with detailed information on incomes, household structure and other socio-economic dimensions. As a concrete application of this cross-validation, we analyze the 2001-2002 tax reform in Luxembourg. The main aspects of this reform are the reduction of the number of the tax brackets and the fall of the maximal marginal tax rate (from 46% in 2000 to 42% in 2001 and to 38% in 2002). The distributional effects of the tax reform are measured in terms of losers and winners, change in inequalities and poverty rates. The results issued from different types of input data are compared for cross-validation and allow us to emphasize methodological difficulties as well as to underline the advantages and limitations of each dataset.

Keywords: EUROMOD; Microsimulation; Tax reform; Validation (search for similar items in EconPapers)
Pages: 39 pages
Date: 2009-11
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://liser.elsevierpure.com/en/publications/cro ... sets-through-micro-3 (application/pdf)

Related works:
Working Paper: Cross-validating administrative and survey datasets through microsimulation and the assessment of a tax reform in Luxembourg (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:irs:iriswp:2009-16

Access Statistics for this paper

More papers in IRISS Working Paper Series from IRISS at CEPS/INSTEAD 11, Porte des Sciences, L-4366 Esch-sur-Alzette, G.-D. Luxembourg. Contact information at EDIRC.
Bibliographic data for series maintained by Philippe Van Kerm ().