ABSTRACT
This chapter makes a first attempt to embed the static microsimulation model EUROMOD for Luxembourg with MIDAS_LU, a dynamic microsimulation forward-looking population model available in Luxembourg as well. The latter is developed by means of Life-Cycle Income Analysis Model (LIAM), a toolbox for the development of dynamic cross-sectional microsimulation models. The role of EUROMOD might be to take care of most tax-benefit computations on a year-by-year basis in an efficient and flexible way. EUROMOD is an integrated European tax-benefit model for the Member States of the European Union. It allows simulating, among other things, the equivalized disposable income of households through an effective implementation of the structure of the population, the distribution of earnings and the tax-benefit system. The architecture underlying LIAM shows strong similarities with the one governing EUROMOD.
