Behavioural Microsimulation Modelling for Tax Policy Analysis in Australia: Experience and Prospects

John Creedy and Guyonne Kalb

Australian Journal of Labour Economics (AJLE), 2005, vol. 8, issue 1, 73-110

Abstract: This paper describes microsimulation modelling in non-technical terms and explains what can be achieved with microsimulation modelling in general, and the Melbourne Institute Tax and Transfer Simulator (MITTS) in particular. The focus is on behavioural microsimulation modelling, which takes individuals’ labour supply responses into account when analysing tax and transfer reforms. Microsimulation models are built to replicate closely the considerable degree of heterogeneity observed in the population. Several examples of recent uses of MITTS are given and briefly described. Given the relatively recent development of behavioural microsimulation models, there are several opportunities for further extensions. For example, it would be valuable to allow for the demand side of labour, indicating whether new labour force participants are likely to find work or to allow for life-cycle dynamics, which are important to deal with population-ageing issues and female labour force participation.

Keywords: Fiscal Policies and Behavior of Economic Agents: Household (effects on labor supply); Social Security and Public Pensions; General Welfare; Basic Needs; Living Standards; Quality of Life; Happiness (search for similar items in EconPapers)
JEL-codes: H31 H55 I32 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://ftprepec.drivehq.com/ozl/journl/downloads/AJLE081creedy.pdf (application/pdf)

Related works:
Working Paper: Behavioural Microsimulation Modelling for Tax Policy Analysis in Australia: Experience and Prospects (2005)
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:ozl:journl:v:8:y:2005:i:1:p:73-110

Access Statistics for this article

More articles in Australian Journal of Labour Economics (AJLE) from Bankwest Curtin Economics Centre (BCEC), Curtin Business School Contact information at EDIRC.
Bibliographic data for series maintained by Sandie Rawnsley ().