Working Paper
Tax-benefit microsimulation model in Rwanda

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 the distributional effects of more comprehensive social security arrangements.

The paper presents an account of Rwanda’s tax and benefit policies as well as a possible underpinning dataset—the Integrated Household Living Conditions Survey—for a tax-benefit microsimulation model, concluding that developing such a model for Rwanda would be feasible.