Naslov
Missing top incomes and tax-benefit microsimulation: evidence from correcting survey data using tax records data

Autori
Ledić, Marko ; Rubil, Ivica ; Urban, Ivica

Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, neobjavljeni rad, znanstveni

Skup
The 21st Journées Louis-André Gérard-Varet (LAGV) conference

Mjesto i datum
Marseille, Francuska, 6-8.6.2022

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
top incomes, survey data, tax records, tax-benefit microsimulation, EUROMOD

Sažetak
Tax-benefit microsimulation typically uses survey data, and the simulated outcomes may be biased due to missing top incomes. Biases also arise when the tax treatment of income depends on its source, and the structure of total income is unrepresentative of the true one. Using the microsimulation model EUROMOD for Croatia, we compare the simulations based on the origi-nal survey data (EU-SILC) with those based on data corrected using tax records and a recent correction method. We show that the correction method may not be able to correct the income structure by source if some sources are severely under-represented and propose to complement the method with a pre-correction. The corrections bring survey incomes and the simulated fiscal instruments closer to the tax data. Simulation of a hypothetical reform shows that its estimated budgetary impact and distributional incidence may be misleading if based on uncorrected data.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

Napomena
This paper is fully supported by the Croatian
Science Foundation, grant number IP-2019-04-9924.

POVEZANOST RADA