Second training on ETMOD

A tax-benefit microsimulation for Ethiopia

Second training on ETMOD

This event will provide potential users of the ETMOD tax-benefit model with comprehensive training. As well as providing an overview of the model, the event will include a number of examples. Attendees will leave with an appreciation of how to navigate and interpret the ETMOD user interface; how to run ETMOD; and how to build and implement a basic policy reform.

Tax-benefit microsimulation models, which combine representative household-level data on incomes and expenditures and detailed coding of tax and benefit legislation, are a useful tool for both policy makers and researchers. The models apply user-defined tax and benefit policy rules to micro-data on individuals and households and calculate the effects of these rules on household income. The effects of different policy scenarios on poverty, inequality, and government revenues can be analysed and compared.

The training is attended by ministry officials, economists and researchers.


Ethiopia, like other developing countries, is building up its social protection system and the financing of public spending will need to be increasingly based on domestic tax revenues. In this process, understanding the system-wide impacts of different policy choices is critically important, and ETMOD tax-benefit microsimulation model is very well suited for this purpose.

This workshop is part of UNU-WIDER's SOUTHMOD – simulating tax and benefit policies for development project. SOUTHMOD is part of UNU-WIDER's research and capacity development programme on domestic revenue mobilization (DRM), funded by the Norwegian Agency for Development Co-operation (Norad).