Tax and Transfer Policy Using Behavioural Microsimulation Modelling
Design and Evaluation
Published on 27. May 2022
Book
Hardback
256 pages
978-1-80220-985-3 (ISBN)
Description
Combining theoretical and practical aspects of policy analysis, this book evaluates actual and proposed policy reforms to income tax and transfer systems, using a behavioural tax microsimulation model. It highlights how these models allow for the full details of tax systems and the considerable population heterogeneity that is found in practice.
John Creedy and Penny Mok look at how such models can be used to obtain summary measures that are relevant in tax debates. These include elasticities of labour supply and measures of the welfare effects of tax changes, in terms of excess burdens. Chapters further examine how models can be used to search systematically, across a range of policy changes, for revenue-neutral reforms which result in an improvement, in terms of an explicit evaluation function.
This will be a timely read for students of public finance, welfare and labour economics. The careful attention paid to metrics used in policy evaluations will also make this a useful book for researchers and policy advisors concerned with income taxation, social transfers, inequality and poverty measurement.
John Creedy and Penny Mok look at how such models can be used to obtain summary measures that are relevant in tax debates. These include elasticities of labour supply and measures of the welfare effects of tax changes, in terms of excess burdens. Chapters further examine how models can be used to search systematically, across a range of policy changes, for revenue-neutral reforms which result in an improvement, in terms of an explicit evaluation function.
This will be a timely read for students of public finance, welfare and labour economics. The careful attention paid to metrics used in policy evaluations will also make this a useful book for researchers and policy advisors concerned with income taxation, social transfers, inequality and poverty measurement.
Reviews / Votes
'The book overall is a great overview of behavioural microsimulation particularly in relation to New Zealand. The book provides some interesting and policy-relevant simulation examples and highlights the ways in which this modelling approach can add signi?cant insights to potential policy outcomes.' -- Ben Phillips, Economic Record 'As in his many previous contributions, John Creedy - here with co-author Penny Mok - succeeds in combining recent progress in behavioural tax simulation models and large micro-datasets with an explicit normative framework of individual and social welfare to shed light on hot and important tax policy questions. Students in public finance, government officials and academic colleagues will highly benefit from this lucidly written assessment of past and planned tax reforms through the lens of up-to-date microsimulation models.' -- Andre Decoster, KU Leuven, Belgium 'This book is a real joy to read for a practitioner of public finance. In addition to providing practical guidance for the microsimulation analyst, I appreciate the authors' careful placement of their contributions in the literature.' -- Thor O. Thoresen, Statistics Norway and University of Oslo, NorwayMore details
Language
English
Place of publication
Cheltenham
United Kingdom
Target group
Professional and scholarly
Dimensions
Height: 234 mm
Width: 156 mm
ISBN-13
978-1-80220-985-3 (9781802209853)
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Schweitzer Classification
Persons
John Creedy, Wellington School of Business and Government, Victoria University of Wellington and Penny Mok, New Zealand Productivity Commission, Wellington, New Zealand
Content
Contents: 1. Introduction 2. Designing Direct Tax Reforms 3. Labour Supply Elasticities 4. The Welfare Costs of Direct Taxation 5. A Benefit Reform: Working for Families 6. The 2010 Tax Changes 7. Welfare-Improving Tax Reforms 8. A Minimum Wage Increase Bibliography Index