TAXBEN is the IFS’s tax and benefit microsimulation model, which calculates the impact of tax and benefit policy on households. It is used heavily in IFS’s work on the impacts of tax and benefit policy. This document gives a high level summary of TAXBEN, covering what policies and effects it does and does not include, and its limitations.
This spreadsheet contains calculations underlying the IFS report 'The Effects of Taxes and Charges on Saving Incentives in the UK' . It allows users to see how those results were calculated and to adjust the inputs (tax rates, assumed rates of return and inflation, etc.) to produce new calculations
LATAX is a multi-country flexible tax micro-simulation model developed by researchers from the Institute for Fiscal Studies (IFS) for the analysis of VAT, excise duties, income tax and social security contributions, as well as (non means-tested) price subsidies.
The control function approach (Heckman and Robb (1985)) in a system of linear simultaneous equations provides a convenient procedure to estimate one of the functions in the system using reduced form residuals from the other functions as additional regressors. The conditions on the structural system under which this procedure can be used in nonlinear and nonparametric simultaneous equations has thus far been unknown. In this paper, we define a new property of functions called control function separability and show it provides a complete characterization of the structural systems of simultaneous equations in which the control function procedure is valid.
This package includes various commands. clr2bound compute two-sided bound estimates using Bonferroni's inequality. clrbound compute a one-sided bound estimate. clrtest tests the hypothesis that the maximum of lower intersection bounds is nonpositive. clr3bound compute two-sided bound estimates by inverting clrtest.
This paper provides a new analysis of the main stylised facts underlying the evolution of labour supply at the extensive and intensive margins in three countries: the United States, the United Kingdom and France. We propose a definition of the extensive and intensive margins corresponding respectively to the employment rate and to hours when employed. This definition is robust to the choice of the reference period and we develop a new statistical decomposition that provides bounds on changes at these margins. We focus on longer-run labour supply changes over the period 1977 to 2007 and abstract from the shorter-run impact of recessions. Examining secular changes over this period, we show that both margins matter in explaining changes in total hours. We then provide a detailed analysis across countries and across time by demographic type. Given the large systematic differences we uncover in the importance of these margins by age and gender, it is unlikely that a single explanation will suffice to account for the macroeconomic evolutions in the three countries.
We develop a new approach to the decomposition of income risk within a nonstationary model of intertemporal choice. The approach allows for changes in income risk over the life cycle and across the business cycle, allowing for mixtures of persistent and transitory components in the dynamic process for income. We focus on what can be learned from repeated cross-section data alone. Evidence from a stochastic simulation of consumption choices in a nonstationarity environment is used to show the robustness of the method for decomposing income risk. The approach is used to investigate the changes in income risk in Britain across the inequality growth period from the late 1970s to the late 1990s. We document peaks in the variance of permanent shocks at the time of recessions.
SparseGrid is an R translation of the Matlab code on http://www.sparse-grids.de (Heiss & Winschel, 2008). Sparse grids can be used to numerically approximate integrals of high dimension, with fewer nodes than grids constructed by a product rule.
The excel spreadsheet pengrid_var_correspondence.xls' (which is also available as part of the ELSA Wave 2 documentation) shows how the variables in the pension-level dataset relate to those contained in the main individual-level dataset.
This user guide describes how pensions in the ELSA data have been categorised and which variables are included in this separate pensions grid, including some additional derived variables not previously available.
A report of research carried out by Institute for Fiscal Studies on behalf of the Department for Work and Pensions. This Appendix provides a detailed and formal derivation of the estimation
methods considered in the main report, as well as of the conditions for their validity.