Description
This volume reports on contemporary research on behavioural microsimulation modelling of tax and transfer systems. Its aims are twofold. Firstly, it discusses the rationale for the basic modelling approach adopted and provides information on econometric methods used to estimate behavioural relationships. Secondly, it describes the Melbourne Institute Tax and Transfer Simulator (MITTS) in detail, explaining its main features, installation and use. After providing a broad review of tax modelling, the authors review alternative approaches to the analysis of labour supply behaviour, discuss the main components of behavioural microsimulation models and present econometric results concerning wage functions and preferences. They go on to provide a detailed description of MITTS, which was constructed by the authors in order to examine the implications of tax reforms in Australia. The book should appeal to those with a special interest in the analysis of tax and transfer systems and labour supply behaviour.
