This paper sets out in detail a microsimulation model of the Slovak tax and transfer system that builds on the existing EUROMOD platform.
The objective is to give an overview of the development process, and to discuss differences relative to EUROMOD. In a validation exercise, we demonstrate that refinements to the current version of the EUROMOD can improve the match between simulated output, underlying data and official statistics. It is concluded that the model is a valid tool to conduct tax and benefit simulation exercises in the context of Slovakia.
Keywords: microsimulation, EUROMOD, tax and benefit policy, Slovakia
JEL classification: C81, I38, H24