TREMOD: a microsimulation model for the Province of Trento (Italy)

Authors

Davide Azzolini, Martina Bazzoli, Silvia De Poli, Carlo Fiorio, Samuele Poy

Publication Date

Jun 2014

Summary

This paper presents the main characteristics of TREMOD, a tax-benefit microsimulationmodel for the Italian province of Trento (Italy). TREMOD is based upon the Italianadaptation of the EUROMOD platform microsimulation model, and its purpose is toinform local tax and welfare policies. TREMOD is a flexible tool that allows simulation ofthe effects of different types of public policies on a plurality of outcomes such as, forexample, individuals’ and households’ income and well-being. The main strength ofTREMOD is the high quality of the data used for its construction. The input database hasbeen obtained by matching survey data (derived from a local representative survey onhouseholds' life conditions, Indagine sulle condizioni di vita delle famiglie trentine, ICFT)with administrative data on individual income tax returns. This aspect is one of the mainstrengths of TREMOD compared with other experiences in microsimulation modelling. Aswe show in this paper, the combination of survey and administrative data ensures goodprecision in the simulations and will allow for the integration of other administrative datasources including pension and labour market records. The first version of TREMOD is a‘static’ microsimulation model.

Publication type

Research Paper

Series Number

2014-01

Links

http://irvapp.fbk.eu/publications/tremod-microsimulation-model-province-trento

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