Documentation Izaψmod V3.0: The IZA Policy Simulation Model

43 Pages Posted: 25 Oct 2014

See all articles by Max Loeffler

Max Loeffler

affiliation not provided to SSRN

Andreas Peichl

ZEW – Leibniz Centre for European Economic Research; University of Mannheim - School of Economics (VWL); IZA Institute of Labor Economics; University of Essex - Institute for Social and Economic Research (ISER)

Nico Pestel

IZA Institute of Labor Economics

Sebastian Siegloch

IZA Institute of Labor Economics; University of Mannheim - Department of Economics; ZEW – Leibniz Centre for European Economic Research - Corporate Taxation and Public Finance Research; CESifo (Center for Economic Studies and Ifo Institute)

Eric Sommer

IZA Institute of Labor Economics

Abstract

This paper describes IZAΨMOD, the policy microsimulation model of the Institute for the Study of Labor (IZA). The model uses household microdata from the German Socio-Economic Panel Study and firm data from the German linked employer-employee dataset LIAB. IZAΨMOD consists of three components: First, a static module simulates the effects of a tax-benefit reform on the budget of the individual household. This includes taxes on income and consumption, social security contributions, public transfers. Secondly, behavioral labor supply responses are estimated. The third component distinguishes our model from most other microsimulation tools. A demand module takes into account possible restrictions of labor demand and identifies the partial equilibrium of the labor market after the supply reactions.

Keywords: microsimulation, tax and benefit systems, labor supply, labor demand, Germany

JEL Classification: D58, H20, J22, J23

Suggested Citation

Loeffler, Max and Peichl, Andreas and Pestel, Nico and Siegloch, Sebastian and Sommer, Eric, Documentation Izaψmod V3.0: The IZA Policy Simulation Model. IZA Discussion Paper No. 8553. Available at SSRN: https://ssrn.com/abstract=2514746

Max Loeffler (Contact Author)

affiliation not provided to SSRN

Andreas Peichl

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

University of Mannheim - School of Economics (VWL) ( email )

Mannheim 68131
Germany

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

University of Essex - Institute for Social and Economic Research (ISER)

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

Nico Pestel

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Sebastian Siegloch

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

University of Mannheim - Department of Economics ( email )

D-68131 Mannheim
Germany

ZEW – Leibniz Centre for European Economic Research - Corporate Taxation and Public Finance Research ( email )

United States

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Eric Sommer

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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