On 11 July 2017, the UNU World Institute for Development Economics Research (UNU-WIDER) will introduce policymakers, researchers, and practitioners to ETMOD, a new tax-benefit microsimulation programme that has been developed under the SOUTHMOD project.
Tax-benefit microsimulation models — which combine representative household-level data on incomes and expenditures and detailed coding of tax and benefit legislation — have proven to be an extremely useful tool for policymakers and researchers alike. The models apply user-defined tax and benefit policy rules to micro-data on individuals and households, and calculate the effects of these rules on household income. The effects of different policy scenarios on poverty, inequality, and government revenues can be analysed and compared.
Ethiopia, like other developing countries, is now building up its social protection system, and the financing of public spending will need to be increasingly based on domestic tax revenues. In this process, understanding the system-wide impacts of different policy choices is critically important, and tax-benefit microsimulation models are very well suited for this purpose.
For more information, or to register, see the event announcement on the UNU-WIDER website.