Accounting for Tax Evasion Profiles and Tax Expenditures in Microsimulation Modelling. The BETAMOD Model for Personal Income Taxes in Italy

41 Pages Posted: 21 Jul 2015

See all articles by Andrea Albarea

Andrea Albarea

Ca Foscari University of Venice, Department of Economics, Students

Michele Bernasconi

Università Ca' Foscari, Venezia - Department of Economics and SSE

Cinzia Di Novi

Ca Foscari University of Venice

Anna Marenzi

Ca' Foscari University of Venice, Department of Economics

Dino Rizzi

Ca Foscari University of Venice - Dipartimento di Economia

Francesca Zantomio

Ca Foscari University of Venice

Date Written: July 16, 2015

Abstract

The paper presents the main characteristics of BETAMOD, a static microsimulation model that reproduces the Italian personal income tax (IRPEF), as well as local income taxes, namely the regional and municipal additional income taxes, building on a detailed reconstruction of tax legislation. With respect to the vast majority of existing tax microsimulation models, the peculiarities of BETAMOD concern two aspects: the inclusion of a detailed set of tax expenditures, and the estimation of individual-specific tax evasion rates, which account for the total individual income level, its composition in terms of income sources, and the geographical area of residence.

Keywords: Tax-benefit microsimulation, tax evasion, tax expenditures, SILC, Italy

JEL Classification: C15, C63, H20, H24, H26, H31

Suggested Citation

Albarea, Andrea and Bernasconi, Michele and Di Novi, Cinzia and Marenzi, Anna and Rizzi, Dino and Zantomio, Francesca, Accounting for Tax Evasion Profiles and Tax Expenditures in Microsimulation Modelling. The BETAMOD Model for Personal Income Taxes in Italy (July 16, 2015). University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. 24/WP/2015. Available at SSRN: https://ssrn.com/abstract=2633361 or http://dx.doi.org/10.2139/ssrn.2633361

Andrea Albarea

Ca Foscari University of Venice, Department of Economics, Students ( email )

Venice
Italy

Michele Bernasconi

Università Ca' Foscari, Venezia - Department of Economics and SSE ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

Cinzia Di Novi

Ca Foscari University of Venice ( email )

Dorsoduro 3246
Venezia, 30123
Italy

Anna Marenzi (Contact Author)

Ca' Foscari University of Venice, Department of Economics ( email )

Cannaregio 873
Venice, 30121
Italy

Dino Rizzi

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy

HOME PAGE: http://www.unive.it/persone/rizzid

Francesca Zantomio

Ca Foscari University of Venice ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

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