View the latest ECUAMOD country report here. This report documents ECUAMOD, the SOUTHMOD micrososimulation model developed for Ecuador. The report describes the different tax–benefit policies in place, how the microsimulation model takes advantage of...
This note describes how the counterfactual datasets in the working paper by Lastunen et al. (2021) have been reweighted, for each country analysed, to the ‘pre-crisis’ time point of 31 March 2020. The procedure consists of five main steps. The note...
This technical note presents a modelling approach used in Lastunen et al. (2021) where tax and benefit policies are scaled to reflect their actual duration during a single calendar year. It can be applied to tax-benefit microsimulation models...
Although the effect of fiscal drag is well studied in the industrialized world, empirical evidence from developing economies remains limited. Against this backdrop, this study aims to explore the effect of fiscal drag on income distribution and work...
This study analyses the impacts of indirect tax benefits policy reforms on income distribution and poverty in Tanzania by applying a standard static microsimulation model TAZMOD v1.8. The simulations model two indirect tax reforms involving changes...
This paper makes use of tax–benefit microsimulation techniques to quantify the distributional effects of COVID-19 in Ecuador and the role of tax–benefit policies in mitigating the immediate impact of the economic shocks. Our results show a dramatic...
In this paper we explore South Africa’s personal income tax system using two microsimulation models. The first, SAMOD, simulates personal income tax and social benefits using a dataset derived from the nationally representative National Income...
Household incomes in Ecuador were badly hit by the pandemic, despite the government’s emergency grant to families. H Xavier Jara Tamayo (University of...
This note, with emphasis on VAT and excise taxes, illustrates how indirect taxes are modelled in the context of GHAMOD, a tax-benefit microsimulation model for Ghana. GHAMOD is similar to the EUROMOD base platform, and its built-in Statistics...
View the latest ECUAMOD country report here. This report documents ECUAMOD, the SOUTHMOD micrososimulation model developed for Ecuador. It describes the different tax–benefit policies in place, how the microsimulation model takes advantage of these...
This technical note has been produced alongside a WIDER working paper assessing the effects on income inequality and income tax simulations of adjusting top incomes of employees in survey data based on administrative tax records in Ecuador. The paper...
This note has been produced alongside a WIDER working paper assessing the effect of the Unemployment Insurance benefit on income protection in Ecuador. The aim of this note is to describe the methodology used to assess the effect of the Unemployment...
Part of Journal Special Issue SOUTHMOD: Modelling Tax-benefit Systems in Developing Countries
Using SAMOD, a tax-benefit microsimulation model for South Africa, this paper examines the joint distributional impact of the increase in the value-added tax (VAT) rate and increases in benefit amounts in 2018. Although poverty and inequality did not...
This paper analyses the impacts of indirect tax policy reforms on income distribution and poverty in Tanzania by applying a standard static microsimulation model TAZMOD v1.8. The simulations model two indirect tax reforms involving changes to the...
This paper assesses the effects on poverty and inequality of the alternative targeting approaches that Zambia’s Social Cash Transfer programme could take as its expansion continues during the period of the country’s Seventh National Development Plan...
View the latest VNMOD country report here. This report documents VNMOD, the SOUTHMOD model developed for Viet Nam. This work was carried out by the Central Institute for Economic Management (CIEM) in collaboration with KU Leuven and the project...
Redistributive systems in Africa are still in their infancy but are constantly expanding in order to finance increasing public spending. This paper aims at characterizing the redistributive potential of six African countries: Ghana, Zambia...
Part of Journal Special Issue SOUTHMOD: Modelling Tax-benefit Systems in Developing Countries
Part of Journal Special Issue SOUTHMOD: Modelling Tax-benefit Systems in Developing Countries
This study evaluates which type of benefit—a universal benefit, a proxy mean-tested benefit, or a categorical benefit— better cushions the poverty effects of income shocks in a developing economy. We compare the effectiveness of the three benefit...
This report documents COLMOD, the SOUTHMOD micrososimulation model developed for Colombia. It describes the different tax–benefit policies in place, how the microsimulation model takes advantage of these different provisions, and the database on...
Establishing an equitable and efficient tax system is essential for reducing poverty, combating inequality, and fostering sustainable economic growth. Rwanda’s government has recognized this and implemented significant changes to the personal income...
SOUTHMOD tax-benefit microsimulation models may in some cases oversimulate taxes or benefits, generating greater expenditure, a greater number of beneficiaries, or greater amounts of taxes or taxpayers than reported in administrative data. Drawing on...
This report documents RWAMOD, the SOUTHMOD model developed for Rwanda. This work was carried out by UNU-WIDER, SASPRI, and the Rwanda Revenue Authority (RRA). The results presented in this report are derived using RWAMOD version 1.1, which is part of...
This paper analyses the effectiveness of tax-benefit systems in reducing poverty and inequality across 13 countries in the Global South. Using national survey data and tax-benefit microsimulation models from the SOUTHMOD project, we provide a cross...
The debate over universal basic income (UBI) has gained traction in the developing world in recent years. We analyse the effects of four UBI schemes on poverty and inequality measures during normal times and times of crisis in Uganda and Zambia. We...
South Africa has a progressive broad-based personal income tax system with relatively few tax expenditures. The two most important are the medical contribution plus additional tax credits for medical expenses, and the deductions allowed for...
The tax-benefit microsimulation model developed for Mozambique, MOZMOD, has proved to be valuable in analysing the impacts and budget implications of...
This paper aims to evaluate the progressivity of different fuel subsidies in Ecuador as well as the budgetary and distributional effects of a potential elimination of such subsidies. Our analysis makes use of ECUAMOD, the tax-benefit microsimulation...
The level of income can be directly inferred from the level of education, making education an important variable as a key determinant of better livelihoods and poverty alleviation. However, in most developing countries education is not accessible to...
This paper explores the role of the recently introduced unemployment insurance benefit (seguro de desempleo) in protecting incomes in case of unemployment in Ecuador. We use ECUAMOD, the tax-benefit microsimulation model for Ecuador, to simulate...
View the latest ECUAMOD country report here. This report documents ECUAMOD, the SOUTHMOD micrososimulation model developed for Ecuador. This work was carried out by the ISER in collaboration with the Instituto de Altos Estudios Nacionales and UNU...
This paper assesses the effects of public policies on income taxes and benefits in six African countries. The comparative analysis focuses on the distribution and composition of incomes and assesses the effect of these policies on inequality and...
This study aims to expand the use of tax-benefit microsimulation tools in Indonesia. In particular, it reviews the feasibility of expanding SOUTHMOD, a tax-benefit microsimulation model being applied in developing countries that was developed based...
The aim of this paper is to explore the redistributive effects of taxes and benefits in Ecuador using two different approaches: direct use of reported taxes and benefits in household survey data, and use of simulated taxes and benefits obtained from...
A large informal sector is a challenge for developing countries building up social protection systems. Expanding social safety nets reduces poverty, but financing them can increase the tax burden, potentially reducing availability of formal sector...
A well functioning system of public service delivery requires the definition and measurement of eligibility for services to be determined in a transparent and non-discretionary manner. This paper uses the case of the Productive Social Safety Net in...
View the latest ECUAMOD country report here. This report documents ECUAMOD, the SOUTHMOD micrososimulation model developed for Ecuador. This work was carried out by the ISER in collaboration with the Instituto de Altos Estudios Nacionales and UNU...
In a democratic system, taxation is a critical part of the social contract between the state and its citizens. The tax system can be used to help address the unacceptably high levels of poverty, inequality, and unemployment in South Africa. An...
The University of Tampere is participating in an international project in which a microsimulation model is being drafted for the evaluation of the...
The distributional analysis of consumption taxes is useful for establishing the welfare impact of tax policy. This paper uses the UGAMOD microsimulation model to establish the tax incidence and welfare impact of excise duty in Uganda. The results...
The quality of data on employment income is explored using Tanzanian and Zambian household survey datasets. The extent of missing and implausible income data is assessed and four different methods are applied to impute missing or implausible values...
The provision of a universal old age pension is increasingly recognized as an important instrument for strengthening and extending social protection. A growing number of emerging economies, including East African countries, are introducing universal...
Part of Journal Special Issue Welfare and distributive effects of social assistance in the Global South
This working paper explores the feasibility of developing a tax and benefit microsimulation model in Zanzibar using the EUROMOD microsimulation software. We review Zanzibar’s tax and benefit arrangements and the potential household survey dataset...
This paper explores the distributional impact of lowering the value-added tax rate for standard-rated items in Tanzania Mainland. Using a static tax-benefit microsimulation model—TAZMOD—which is underpinned by data derived from the Household Budget...
Redistributive systems in Africa are still in their infancy but are expanding in order to finance increasing public spending. This study aims at characterising the redistributive potential of six African countries: Ghana, Zambia, Mozambique, Tanzania...
Agricultural subsidies may have significant productive and distributional consequences, and policy-makers need to be able to assess these impacts as a part of the overall tax and benefit policy. Microsimulation models offer a tool for such analysis...
This paper assesses the feasibility of developing a tax and benefit microsimulation model in Rwanda. Tax-benefit microsimulation can be used to explore ways in which national development goals can be achieved in a cost-effective manner, and to assess...
Tanzania has expanded its social protection framework significantly over the past decade, but the country continues to grapple with important gender inequalities. This paper examines, first, the evolution and effects of Tanzania’s social protection...
By combining household survey data before and during the COVID-19 pandemic with detailed tax-benefit simulations, this paper quantifies the distributional effects of COVID-19 in Ecuador and the role of tax-benefit policies in mitigating the immediate...
How can Vietnamese policymakers improve their policy choices related to social protection and tax policies? Who are the experts providing evidence on...
View the latest VNMOD country report here. This report documents VNMOD, the SOUTHMOD model developed for Viet Nam. This work has been carried out by the Central Institute for Economic Management (CIEM) in collaboration with UNU-WIDER and SASPRI. The...
This report documents RWAMOD, the SOUTHMOD model developed for Rwanda. It describes the different tax-benefit policies in place, how the microsimulation model picks up these different provisions, and the database on which the model runs. It concludes...
This report documents VNMOD, the SOUTHMOD model developed for Viet Nam. This work has been carried out by the Central Institute for Economic Management (CIEM) in collaboration with UNU-WIDER and SASPRI. The results presented in this report are...
This report documents ECUAMOD, the SOUTHMOD micrososimulation model developed for Ecuador. It describes the different tax–benefit policies in place, how the microsimulation model takes advantage of these different provisions, and the database on...
This report documents PERUMOD, the SOUTHMOD micrososimulation model developed for Peru. It describes the different tax–benefit policies in place, how the microsimulation model takes advantage of these different provisions, and the database on which...
This report documents BOLMOD, the SOUTHMOD micrososimulation model developed for Bolivia. It describes the different tax–benefit policies in place, how the microsimulation model takes advantage of these different provisions, and the database on which...
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