RUSMOD : A Tool for Distributional Analysis in the Russian Federation
The purpose of this paper is to introduce applications of RUSMOD -- a microsimulation model for fiscal incidence analysis in the Russian Federation. RUSMOD combines household survey micro-data and fiscal policy rules to simulate the Russian tax-ben...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/603961567514069098/RUSMOD-A-Tool-for-Distributional-Analysis-in-the-Russian-Federation http://hdl.handle.net/10986/32338 |
| Summary: | The purpose of this paper is to
introduce applications of RUSMOD -- a microsimulation model
for fiscal incidence analysis in the Russian Federation.
RUSMOD combines household survey micro-data and fiscal
policy rules to simulate the Russian tax-benefit system: the
size and distribution of taxes collected and benefits paid,
and the impact of the system on different population groups.
Microsimulation models, such as RUSMOD, are habitually used
in developed countries, and can be versatile budgetary
policy tools. Using this model, the current tax-benefit
system in Russia is examined. The impact of the system is
measured across the income distribution, age groups, family
types, localities, as well as across time. One of the
applications of RUSMOD this paper aims to assess is the role
of the tax-benefit system in explaining the incidence of
informal employment in Russia. The paper investigates
whether the existing system creates disincentives for
formalization in terms of reducing disposable incomes and
increasing poverty and inequality, and whether a
hypothetical tax reform would be able to reduce the
opportunity costs of formalization for informal workers,
improve distributional outcomes, and increase fiscal revenues. |
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