Eur3: A Prototype European Tax-Benefit Model

François Bourguignon, Cathal O'Donoghue, J. Sastre-Descals, A. Spadara and F. Utili

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: A prototype multi-country static microsimulation model has been built to simulate tax and social benefits in a number of European countries, as part of a preparatory study to examine the possibility of building a comprehensive EU wide integrated microsimulation model. The countries considered in the first stage of the project are France, Italy and the United Kingdom. This paper describes what characterises sucn a model compared with existing national models and outlines some of the issues encountered. A number of policy experiments were carried out, including the introduction of national Basic Incomes, a Europe-wide child support reform, and a reduction in social insurance contributions for the low paid. The results shed light on strong cross-national differences in existing fiscal systems and relative income distributions in the three countries.

Date: 1997-07
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Working Paper: Eur 3: A Prototype European Tax-Benefit Model (1997)
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