Tax Shifting of Direct and Indirect Taxation in Italy and Spain
Extending the policy scope of EUROMOD to include indirect taxes
About this project
Background
Two research projects, financed by the European Commission Joint Research Centre (Institute for Prospective Technological Studies), aimed to extend the policy scope of EUROMOD to include indirect taxes.
Extensions to cover indirect taxes allow a more comprehensive assessment of the effects of policy changes on households than is currently possible with EUROMOD; it enables analysis of the effects of shifting taxes away from labour; and offers the potential for tax system ‘greening’ assessments.
Description and methods
The two projects were designed to pilot a method already developed by the EUROMOD Belgian team from KU Leuven to cover four new countries. This involved imputing expenditure information from Household Budget Survey microdata into the EU-SILC microdata used by EUROMOD. One, led by ISER, focused on Italy and Spain and involved the EUROMOD Italian team (Francesco Figari, Carlo Fiorio and Chiara Gigliarano) and Olga Cantó Sánchez of the University of Alcalá. The other, conducted by KU Leuven, focused on France and Germany.
This project has been followed up by a larger one that extends the methodology used to a further 10 EU countries – EUROMOD Extension to Indirect Taxation.