ZEW-EviSTA: A Microsimulation Model of the German Tax and Transfer System

65 Pages Posted: 22 Jul 2022

See all articles by Florian Buhlmann

Florian Buhlmann

ZEW – Leibniz Centre for European Economic Research

Michael Hebsaker

ZEW – Leibniz Centre for European Economic Research

Tobias Kreuz

ZEW – Leibniz Centre for European Economic Research

Jakob Schmidhaeuser

ZEW – Leibniz Centre for European Economic Research

Sebastian Siegloch

ZEW – Leibniz Centre for European Economic Research

Holger Stichnoth

ZEW – Leibniz Centre for European Economic Research

Date Written: 2022

Abstract

This article describes ZEW-EviSTA®, the microsimulation model developed and used at ZEW - Centre for European Economic Research in Mannheim. The model simulates the German tax and transfer system using household micro level data. By estimating fiscal effects, labor market outcomes as well as distributional impacts the model allows for a comprehensive ex ante analysis of reform proposals. Heterogeneity analyses targeting specific subgroups of the population are feasible, too. The present article describes which data sources are used for the simulation, how key features of the German tax and transfer system are implemented, which simulation methods are employed to analyze policy changes and how the model is validated against official statistics. Moreover, by providing examples of the outputs which ZEW-EviSTA generates the paper gives an idea of the questions that can be answered using the model.

Keywords: microsimulation, tax system, tax policy, labour market, labour supply, labour demand, Germany, policy analysis

JEL Classification: D58, H20, J22, J23

Suggested Citation

Buhlmann, Florian and Hebsaker, Michael and Kreuz, Tobias and Schmidhaeuser, Jakob. and Siegloch, Sebastian and Stichnoth, Holger, ZEW-EviSTA: A Microsimulation Model of the German Tax and Transfer System (2022). ZEW - Centre for European Economic Research Discussion Paper No. 22-026, Available at SSRN: https://ssrn.com/abstract=4168869 or http://dx.doi.org/10.2139/ssrn.4168869

Florian Buhlmann (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

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

Michael Hebsaker

ZEW – Leibniz Centre for European Economic Research ( email )

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

Tobias Kreuz

ZEW – Leibniz Centre for European Economic Research ( email )

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

Jakob. Schmidhaeuser

ZEW – Leibniz Centre for European Economic Research ( email )

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

Sebastian Siegloch

ZEW – Leibniz Centre for European Economic Research ( email )

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

Holger Stichnoth

ZEW – Leibniz Centre for European Economic Research ( email )

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

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