Tax-benefit reforms: microsimulation in developing countries

SOUTHMOD Project Workshop

This event provides teams from seven countries (Mozambique, Ghana, Tanzania, Zambia, Ethiopia, Vietnam, Ecuador) with the opportunity to present the final tax-benefit microsimulation models and share the lessons learnt in the model-building process. Part of the UNU-WIDER SOUTHMOD project run in collaboration with ISSER, the University of Tampere, and the University of Essex, the meeting will also provide a forum for joint discussion on the ways ahead in terms of model updating and promoting their use.

Tax-benefit microsimulation models — which combine representative household-level data on incomes and expenditures and detailed coding of tax and benefit legislation — have proven to be an extremely useful tool for policy makers and researchers alike. The models apply user-defined tax and benefit policy rules to microdata 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.