Book Chapter

Enhancing tax-benefit modelling functionality: behavioural responses in UKMOD

By Justin van de Ven, Matteo Richiardi, Natasha Brooks and Daria Popova

Edited by Francesco Figari and Holly Sutherland

Publication details

Publication date
Series or book
EUROMOD: 30 years of the EU tax-benefit microsimulation model
Pages
pp. 421–429
Publisher
Springer
DOI
https://doi.org/10.1007/978-3-032-31414-7_24
ISBN
978-3-032-31413-0

Summary

This chapter outlines a simple, user-friendly approach to incorporating behavioural responses to policy counterfactuals into standard tax-benefit modelling. The method relies on the use of elasticities, drawn either from the empirical literature or from scenario-based analysis. The discussion is illustrated with reference to a dedicated add-on developed for UKMOD—a tax-benefit model for the UK—while also highlighting its applicability to other EUROMOD-based models. To the best of our knowledge, UKMOD is currently the only freely available tax-benefit model that offers this functionality.

Notes

© 2026 The Author(s), under exclusive license to Springer Nature Switzerland AG

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