Comparison of Taxes and Social Insurance Premium Burdens in Household Accounts

Taro Ohno, Masahiko Nakazawa, Kazuaki Kikuta and Manabu Yamamoto
Additional contact information
Taro Ohno: Associate Professor, Faculty of Economics, Management and Information Science, Onomichi City University; Senior Visiting Scholar, Policy Research Institute, Ministry of Finance
Masahiko Nakazawa: Former Professor, Research Center for Advanced Policy Studies, Institute of Economic Research, Kyoto University
Kazuaki Kikuta: Former Researcher, Policy Research Institute, Ministry of Finance
Manabu Yamamoto: Former Researcher, Policy Research Institute, Ministry of Finance

Public Policy Review, 2015, vol. 11, issue 4, 547-572

Abstract: This paper aims (1) to examine the characteristics of various statistics by comparing Indicated Values in response to questionnaires concerning various taxes and social insurance premiums and (2) to verify the validity of fitted values of the household tax burden (in terms of income and residential taxes) by comparing the Indicated Values with the Fitted Values. First, the comparison of Indicated Values in different statistics showed that Indicated Values of tax and insurance premiums were underestimated in the National Survey of Family Income and Expenditure and the Family Income and Expenditure Survey. In addition, as a result of the comparison between the Indicated Values and Fitted Values and the examination of the distribution of disparities between them, it was found that the mean disparity between the Indicated and Fitted Values of income and residential taxes was zero and the dispersion was around 3%. It was also confirmed that the disparity occurred frequently because of entry errors for the tax amount and that entry errors for values in questionnaires that affected the disparity included gbusiness income entry error h and gtax amount entry error due to errors in digits. h The implication of the examination is that Fitted Values obtained through microsimulation analysis are estimates with little bias regarding the macro values obtained through collection of data and that there is little margin of error. In that sense, these Fitted Values have sufficient precision to be used for the evaluation of policies.

Keywords: taxes; insurance premium; indicated values; fitted values; microsimulation analysis (search for similar items in EconPapers)
JEL-codes: C15 H24 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://warp.da.ndl.go.jp/info:ndljp/pid/11217434/ ... w/ppr030/ppr030c.pdf (application/pdf)

Related works:
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:mof:journl:ppr030c

Access Statistics for this article

More articles in Public Policy Review from Policy Research Institute, Ministry of Finance Japan Contact information at EDIRC.
Bibliographic data for series maintained by Policy Research Institute ().