Feasibility study: how to integrate labour supply in the Belgian tax benefit model MIMOSIS?
Decoster, A., De Swerdt, K. (2010). Feasibility study: how to integrate labour supply in the Belgian tax benefit model MIMOSIS?, Final Report (Part 3) of the project “Belasting op arbeid en mogelijke arbeidsaanbodreacties” funded by FPS Social Security Leuven, KULeuven CES, 1-11pp.
ABSTRACT
In this report we outline the steps to be taken after the estimation of the labour supply model (as described in Report 2 of this project) in order to integrate labour supply responses in the MIMOSIS model. We explain the difference between either calibrating the model in the baseline, or directly using the estimated probabilities to obtain expected labour supply, income and other variables. We also sketch briefly the sequence of logical steps to integrate labour supply responses in a policy simulation using pseudo-code.
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