Mimicing Tax Policies and the Labour Market

Describes the structure of MIMIC and discusses a number of policy measures. Moreover, this book elaborates on proposals that are in discussion, such as the flat tax. To easily understand the model, it also presents a core version with only a few equations.
In the Netherlands, CPB often adopts the MIMIC model to explore the structural labour market implications of changes in the tax and social-insurance system. This applied general-equilibrium model combines microeconomic theory with a rich institutional detail and a firm empirical basis. This book describes the structure of MIMIC and discusses a large number of policy measures that have been proposed during the last five years. Moreover, it elaborates on proposals that are currently in discussion, such as the flat tax. To ease the understanding of the model, we also present a core version with only a few equations.

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