Tax-benefit microsimulation models are tools that combine detailed coding of the legislation of taxes and benefits with household level data on incomes and expenditures to simulate individual and household tax liabilities and benefit entitlements.
The models can be used to study the extent to which policy reforms contribute to changes in poverty and inequality and to make comparisons over time and across countries. They can also be used to simulate the effect of proposed or hypothetical policy reforms and to assess the cushioning effect of taxes and benefits in the event of economic shocks or demographic changes.
Microsimulation models by country
SOUTHMOD and EUROMOD-based models for LAC countries
Tax-benefit microsimulation models have been recently developed in the EUROMOD platform for a number of Latin American countries. These models are aimed to enable researchers and policy makers to perform ex-ante evaluations of policy reforms in a comparative way.
The SOUTHMOD project, a major international collaboration involving LSE, UNU-WIDER, SASPRI, and local researchers, currently hosts tax-benefit microsimulation models for Bolivia, Colombia, Ecuador and Peru, as well as models for seven African countries (Ethiopia, Ghana, Mozambique, Rwanda, Tanzania, Uganda, Zambia) and one country in Southeast Asia (Vietnam).
Other EUROMOD-based microsimulation models are developed and maintained by researches in a number of academic institutions in LAC and are constantly used for comparative analysis focused on the effect of tax-benefit policies on income, formal employment and other social outcomes.
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Country |
Model |
Data |
Data years |
Policy years |
| Argentina | Latinmod-Argentina | Encuesta de Ingresos y Gastos de los Hogares (ENGHO) | 2012, 2019, 2020 | 2012, 2015, 2019, 2020 |
| Bolivia | BOLMOD | Encuesta de Hogares | 2008, 2015, 2019, 2020 | 2008, 2015, 2019-2022 |
| Brazil | BRASMOD | Pesquisa Nacional por Amostra de Domicílios (PNAD) | 2008-2022 | 2008-2022 |
| Chile | CHILMOD | Encuesta de Caracterización Socioeconómica Nacional (CASEN) | 2017 | 2017 |
| Colombia | COLMOD | Encuesta Nacional de Calidad de Vida (ECV), Gran Encuesta Integrada de Hogares (GEIH) |
2014 2008, 2014, 2019, 2020 |
2014, 2019-2022 |
| Costa Rica | CRIMOD | Encuesta Nacional de Hogares | 2019, 2022 | 2019, 2022 |
| Dominican Republic | DOMINMOD | Encuesta Nacional Continua de Fuerza de Trabajo | 2019, 2020 | 2019, 2020 |
| Ecuador | ECUAMOD | Encuesta Nacional de Ingresos y Gastos de Hogares Urbanos y Rurales (ENIGHUR), Encuesta Nacional de Empleo, Desempleo y Subempleo (ENEMDU) |
2011 2008, 2014, 2019, 2020, 2021 |
2011-2022 |
| El Salvador | SALVAMOD | Encuesta de Hogares de Propósitos Múltiples | 2019, 2021 | 2019, 2021 |
| Guatemala | GUATEMOD | Enuesta Nacional de Empleo e Ingresos | 2019, 2021 | 2019, 2021 |
| Mexico | MEXMOD | Encuesta Nacional de Ingresos y Gastos de los Hogares (ENIG) | 2014, 2016, 2018, 2020 | 2014, 2019 |
| Panama | PANAMOD | Encuesta de Propósitos Múltiples | 2019, 2022 | 2019, 2022 |
| Peru | PERUMOD | Encuesta Nacional de Hogares (ENAHO) | 2019, 2020 | 2019-2022 |
| Uruguay | Latinmod-Uruguay | Encuesta Continua de Hogares (ECH) | 2014, 2019, 2020 | 2014, 2019, 2020 |