Tax and Transfer Policy Using Behavioural Microsimulation Modelling: Design and Evaluation

This book evaluates actual and proposed policy reforms to income tax and transfer systems using a behavioral tax microsimulation model, highlighting how these models can be used to obtain summary measures and revenue-neutral reforms. It is a timely read for students of public finance, welfare, and labor economics, and for researchers and policy advisors concerned with income taxation, social transfers, inequality, and poverty measurement.

Format: Hardback
Length: 256 pages
Publication date: 27 May 2022
Publisher: Edward Elgar Publishing Ltd

Combining theoretical and practical aspects of policy analysis, this comprehensive book evaluates both existing and proposed policy reforms related to income tax and transfer systems. Employing a behavioural tax microsimulation model, it sheds light on how these models facilitate the comprehensive exploration of tax systems and the significant population heterogeneity observed in practice. John Creedy and Penny Mok delve into the utilization of such models to derive concise and meaningful summary measures that hold significance in tax debates. These measures encompass elasticities of labour supply and assessments of the welfare implications of tax changes, particularly in terms of excess burdens. Furthermore, the chapters delve into the systematic exploration of a wide range of policy changes, aimed at achieving revenue neutrality, while prioritizing improvements in an explicit evaluation function.

This book will serve as a valuable resource for students pursuing studies in public finance, welfare, and labour economics. The meticulous attention given to the metrics employed in policy evaluations makes it an essential read for researchers and policy advisors engaged in income taxation, social transfers, inequality, and poverty measurement. By amalgamating theoretical insights with practical applications, this book provides a comprehensive and insightful examination of policy reforms, offering valuable perspectives to scholars, policymakers, and stakeholders alike.

Dimension: 234 x 156 (mm)
ISBN-13: 9781802209853