@article {10.34196/ijm.00326,
article_type = {journal},
title = {Dynamic Simulation of Taxes and Welfare Benefits by Database Imputation},
author = {van de Ven, Justin and Bronka, Patryk and Richiardi, Matteo},
volume = 18,
number = 2,
year = 2025,
month = {aug},
pub_date = {2025-08-20},
pages = {124-155},
citation = {IJM 2025;18(2):124-155},
doi = {10.34196/ijm.00326},
url = {https://doi.org/10.34196/ijm.00326},
abstract = {This paper proposes a new method for describing a realistic tax-benefit system in a dynamic microsimulation model. The suggested approach draws upon existing third-party tax-benefit calculators and provides an alternative to integration of tax functions within a dynamic structure. It has the advantages of adapting to the degree of household sector detail described by a model and permits taxes and benefits to be imputed directly from commonly available micro-data sources. A practical application to a dynamic programming model designed to reflect the contemporary UK policy context indicates that the proposed method for projecting taxes and benefits implies a comparable computational burden and generates qualitatively comparable results to a detailed functional description of fiscal policy, while simplifying model development.},
keywords = {static, dynamic, agent-based, microsimulation, taxes, welfare benefits},
journal = {IJM},
issn = {1747-5864},
publisher = {International Journal of Microsimulation},
}