Microsimulation of fiscal policy

The fundamental aim of this line of research is to implement programmes of microsimulation of fiscal policies, enabling the economic assessment of possible proposals of fiscal reform.

Microsimulation offers different dynamic analyses with information on the behaviour of the affected agents, the intake or budget cost of the measures, and variations in the redistribution of income and welfare.

The microsimulation programme seeks to generate two main work modules: one, on personal income tax, and another, on indirect taxation, both general and on specific consumer items.

The interest of microsimulation, a priority project among the IEF’s research activities, requires a substantial assignment of human and material resources, especially in the sphere of computing. From the point of view of human resources, this line of research is intended to include specialists in econometrics, statisticians, specialists in sampling, computer programmers and economists specialising in microeconomics applied to the public sector.

The evolving nature of fiscal policy, together with the successive inclusion of available microdata, requires continuous maintenance and improvement of the microsimulator, making this an ongoing project.