ABSTRACT
Microsimulation modelling of tax-benefit policies based on survey data is used as a tool for policy recommendations in many countries. The purpose of this paper is to present a microsimulation model for Germany which has been used to analyse the effects of tax and benefit reforms on incentives, on the allocation and distribution of resources, and on government revenues. We summarise the model, what it does and how it works, and show, with some examples, the type of results the model produces: How it can be used to augment survey statistics in an explanatory manner, and how the model has been used to assess the impact of changes in the German tax-benefit system, and to support policy formulation.
