Microsimulation tool of the tax and transfer system in Slovakia
The Commission is supporting the Council for Budget Responsibility in Slovakia in modernising their modelling methods for estimating the immediate, behavioural and aggregate fiscal effects of potential tax and transfer policy initiatives. The technical support focuses on:
- creating a data set based on administrative data;
- adjusting the microsimulation tool to enable it to run the new data set.
In the long run, the adapted tool will contribute to more reliable and improved estimates. These could improve the fiscal assessment of future tax reforms, the evaluation of income equality and poverty and the evaluation of the impact of tax reforms on individual and household disposable income.