Enhancing tax-benefit modelling functionality: behavioural responses in UKMOD

Authors

Justin van de Ven, Matteo Richiardi, Natasha Brooks, Daria Popova

Editors

Francesco Figari
Holly Sutherland

Publication Date

Sep 2026

Summary

This chapter outlines a simple, user-friendly approach to incorporating behavioural responses to policy counterfactuals into standard tax-benefit modelling. The method relies on the use of elasticities, drawn either from the empirical literature or from scenario-based analysis. The discussion is illustrated with reference to a dedicated add-on developed for UKMOD—a tax-benefit model for the UK—while also highlighting its applicability to other EUROMOD-based models. To the best of our knowledge, UKMOD is currently the only freely available tax-benefit model that offers this functionality.

DOI

https://doi.org/10.1007/978-3-032-31414-7_24

Publication type

Book Chapter

Research area

Tax and benefit systems

Notes

Cid:589186

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