EconLav Microsimulation Model

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The EconLav microsimulation model is an innovative instrument for the analysis of the effects of tax and benefit system reforms.

EconLav provides useful input for policy formulation through simulations of the impact of the reforms on labour supply, public finances and income distribution. The model is static with behavioural responses. Starting from a detailed description of the fiscal rules and benefit schemes, it derives the individuals' reactions to policy changes. The behavioural responses concern labour supply and evasion of tax and social security contributions.

EconLav makes use of different databases: the Bank of Italy Survey on Households Income and Wealth, a sample of fiscal declarations provided by the External website Department of Tax Policies of the Ministry of Economy and Finance (which contributes to the development of the model) and other statistical and administrative sources (ISTAT, INPS, etc.).

The model is developed by a working group at ISFOL under the supervision of an executive committee and with a scientific committee as advisor.

The static and behavioural versions of the model were the subject of the convention between the Ministry of Economy and Finance, the Ministry of Labour, Health and Social Policies and the ISFOL.

Sections

• Working Papers
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• Bibliography
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• Useful Links
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