ETMOD – simulating tax and benefit policies for development in Ethiopia
ETMOD, the tax-benefit microsimulation model for Ethiopia, has been developed in cooperation with the Ethiopian Development Research Institute (EDRI), the EUROMOD team at the Institute for Social and Economic Research (ISER) at the University of Essex, and KU Leuven. The newest available version of ETMOD is based on the Ethiopia Socioeconomic Survey (ESS) 2013-14, allowing for representative results on the national and to a certain extent on the sub-national level. Policies are simulated for 2014 through 2017 (based on updated household level data from 2013-14).
ETMOD is a highly versatile yet easy to use tool for policymakers and researchers alike. Possible policy reform simulations in ETMOD include, for example, a universal safety net (PSNP for both urban and rural households) or a universal pension for the elderly. With ETMOD 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 ETMOD 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.
ETMOD was launched in Addis Ababa in July 2017 when the first training course also took place with over 30 government officials and researchers from Ethiopia.