Tax and Transfer Policy Using Behavioural Microsimulation Modelling

Design and Evaluation

John Creedy, Wellington School of Business and Government, Victoria University of Wellington and Penny Mok, New Zealand Productivity Commission, Wellington, New Zealand

Combining theoretical and practical aspects of policy analysis, this book evaluates actual and proposed policy reforms to income tax and transfer systems, using a behavioural tax microsimulation model. It highlights how these models allow for the full details of tax systems and the considerable population heterogeneity that is found in practice.

‘As in his many previous contributions, John Creedy – here with co-author Penny Mok – succeeds in combining recent progress in behavioural tax simulation models and large micro-datasets with an explicit normative framework of individual and social welfare to shed light on hot and important tax policy questions. Students in public finance, government officials and academic colleagues will highly benefit from this lucidly written assessment of past and planned tax reforms through the lens of up-to-date microsimulation models.’
– André Decoster, KU Leuven, Belgium

‘This book is a real joy to read for a practitioner of public finance. In addition to providing practical guidance for the microsimulation analyst, I appreciate the authors’ careful placement of their contributions in the literature.’
– Thor O. Thoresen, Statistics Norway and University of Oslo, Norway