Evaluating the Aggregate Effects of Tax and Benefit Reforms

Michal Horvath, Matus Senaj, Zuzana Siebertova (), Norbert Svarda () and Jana Valachyova ()
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Zuzana Siebertova: Council for Budget Responsibility
Jana Valachyova: Council for Budget Responsibility

Working Papers from Council for Budget Responsibility

Abstract: The paper introduces a new way of linking microsimulation models with dynamic general equilibrium frameworks to obtain an evaluation of the impact of detailed tax and benefit measures on the aggregate economy. The approach involving polynomial approximation to aggregated output from behavioural microsimulation permits the solution for the long-run steady state and the transition path in one numerical simulation of the dynamic aggregate economy. The practical usefulness of the approach is demonstrated by evaluating actual and hypothetical tax reforms in the context of Slovakia.

Keywords: microsimulation; dynamic general equilibrium; unemployment; labour supply elasticity; tax reform (search for similar items in EconPapers)
JEL-codes: E24 H24 H31 J22 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2018-04
New Economics Papers: this item is included in nep-cmp, nep-dge, nep-mac, nep-pbe and nep-pub
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:cbe:wpaper:201801

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