The Eurosystem Household Finance and Consumption Survey: a new underlying database for EUROMOD

Publication type

Journal Article

Authors

Publication date

June 1, 2016

Abstract:

We explore the prospects for using the Eurosystem Household Finance and Consumption Survey (HFCS) dataset as an underlying micro-database for the EU tax-benefit model, EUROMOD. This will allow expanding the policy domains currently covered in EUROMOD with dimensions like wealth taxation, incentives for wealth accumulation and asset tests determining benefit eligibility. As the HFCS only contains gross income amounts which are not suitable for distributive analysis, the purpose of this paper is to derive net incomes by simulating the gross-to-net transition with EUROMOD taking into account all important details of the social security and personal income tax system. In order to identify the issues and illustrate their importance a trial database for Belgium and Italy is constructed

Published in

International Journal of Microsimulation

Volume and page numbers

Volume: 9 , p.35 -65

ISSN

17475864

Subjects

Link

https://ideas.repec.org/a/ijm/journl/v9y2016i3p35-65.html


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