1. Taxes and benefits
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FiFoSiM – An integrated tax benefit microsimulation and CGE model for Germany

  1. Andreas Peichl  Is a corresponding author
  2. Thilo Schaefer  Is a corresponding author
  1. ISER and University of Cologne, Germany
  2. University of Cologne, Germany
Research article
Volume 2(1) Spring 2009
Cite this article as: A. Peichl, T. Schaefer; 2009; FiFoSiM – An integrated tax benefit microsimulation and CGE model for Germany; International Journal of Microsimulation; 2(1); 1-15. doi: 10.34196/ijm.00008
4 figures and 5 tables

Figures

Figure 1
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Basic setup of FiFoSiM.
Figure 2
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The basic principle of statistical matching.
Figure 3
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Nested CES utility function.
Figure 4
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Structure of the nested FiFoSiM production function.

Tables

Table 1
Strength and limitations of the dual database.
Year Ref. fast fast* gsoep gsoep*
2005 181.00 178.75 181.16 185.85 180.69
2006 192.85 190.02 192.64 197.27 192.23
2006 200.67 198.71 201.46 206.51 200.30

  1. Notes: The reference value (Ref.) is a federal government estimate of personal income tax for each year.

  2. *

    indicates an enhanced dataset.

Table 2
Calculation of personal income tax.
  Sum of net incomes from 7 categories (receipts from each source minus expenses)
= adjusted gross income
− deductions (social security and insurance contributions, personal expenses)
= taxable income (x)
. tax formula
= tax payment (T)
Table 3
Duration of unemployment benefit entitlement.
Old regulation until 31.01.2006 New regulation from 01.02.2006
Employment period (months) Age (Years) Benefit period (months) Employment period (months) Age (Years) Benefit period (months)
12   6 12   6
16   8 16   8
20   10 20   10
24   12 24   12
30 45 14 30 55 15
36 45 18 36 55 18
44 47 22      
52 52 26      
64 57 32      
Table 4
Fiscal effects of reform without behavioural reactions.
  Personal income tax (€ billion)
Reform phase FAST* GSOEP*
Pre-reform 181.16 180.69
Introduction 179.15 179.08
Final 168.12 166.89
Table 5
Estimated results (FAST*) of the reforms proposed by Mitschke.
  Reform phase
  Introduction Final
PIT revenue − €2 billion − €13 billion
Labour supply +103,000 +251,000
Employment +370,000 +540,000
Economic growth +1.1% +1.7%

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