ECUAMOD - simulating tax and benefit policies for development in Ecuador
ECUAMOD, the tax-benefit microsimulation model for Ecuador, has been developed in cooperation with the Instituto de Altos Estudios Nacionales (IAEN), and the EUROMOD team at the Institute for Social and Economic Research (ISER) at the University of Essex. The newest available version of ECUAMOD is based on the National Income and Expenditure Survey in Rural and Urban households (Encuesta Nacional de Ingresos y Gastos de Hogares Urbanos y Rurales, ENIGHUR) 2011/12 allowing for representative results on the national and sub-national level. Policies are simulated for 2011 through 2017 (based on updated household-level data from 2011/2012).
ECUAMOD is a highly versatile yet easy to use tool for policymakers and researchers alike. Possible policy reform simulations in ECUAMOD include, for example, changes to the Human Development Transfer (Bono de Desarrollo Humano), a universal child benefit or a universal pension payment to the elderly. With ECUAMOD the number of beneficiaries and the total cost to the state budget can be simulated and characteristics of the prospective recipients analysed (such as: Are prospective recipients more likely to live in urban or rural areas? Do they work in the formal sector or not? etc.). Yet ECUAMOD also allows to calculate the effects on the government’s budget (How much would such a policy cost?) including, for example, how tax rates could be increased to offset the additional expenditures on social protection.
ECUAMOD was launched in 2016. During 2017 two training courses took place in Quito, Ecuador with government officials and researchers including representatives from the Central Bank of Ecuador and the Ministries of Economic Policy and Finance of Ecuador.