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...

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Main Authors:	Matytsin, Mikhail, Popova, Daria, Freije, Samuel
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	FISCAL INCIDENCE FISCAL POLICY MICROSIMULATION TAXATION TAX-BENEFIT POLICY PUBLIC SPENDING INFORMAL ECONOMY INCOME DISTRIBUTION BUDGET POLICY INFORMAL EMPLOYMENT POVERTY INEQUALITY TAX REFORM
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

id	okr-10986-32338
recordtype	oai_dc
spelling	okr-10986-323382022-08-01T00:25:37Z RUSMOD : A Tool for Distributional Analysis in the Russian Federation Matytsin, Mikhail Popova, Daria Freije, Samuel FISCAL INCIDENCE FISCAL POLICY MICROSIMULATION TAXATION TAX-BENEFIT POLICY PUBLIC SPENDING INFORMAL ECONOMY INCOME DISTRIBUTION BUDGET POLICY INFORMAL EMPLOYMENT POVERTY INEQUALITY TAX REFORM 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. 2019-09-03T17:09:58Z 2019-09-03T17:09:58Z 2019-09 Working Paper http://documents.worldbank.org/curated/en/603961567514069098/RUSMOD-A-Tool-for-Distributional-Analysis-in-the-Russian-Federation http://hdl.handle.net/10986/32338 English Policy Research Working Paper;No. 8994 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Russian Federation
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FISCAL INCIDENCE FISCAL POLICY MICROSIMULATION TAXATION TAX-BENEFIT POLICY PUBLIC SPENDING INFORMAL ECONOMY INCOME DISTRIBUTION BUDGET POLICY INFORMAL EMPLOYMENT POVERTY INEQUALITY TAX REFORM
spellingShingle	FISCAL INCIDENCE FISCAL POLICY MICROSIMULATION TAXATION TAX-BENEFIT POLICY PUBLIC SPENDING INFORMAL ECONOMY INCOME DISTRIBUTION BUDGET POLICY INFORMAL EMPLOYMENT POVERTY INEQUALITY TAX REFORM Matytsin, Mikhail Popova, Daria Freije, Samuel RUSMOD : A Tool for Distributional Analysis in the Russian Federation
geographic_facet	Europe and Central Asia Russian Federation
relation	Policy Research Working Paper;No. 8994
description	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.
format	Working Paper
author	Matytsin, Mikhail Popova, Daria Freije, Samuel
author_facet	Matytsin, Mikhail Popova, Daria Freije, Samuel
author_sort	Matytsin, Mikhail
title	RUSMOD : A Tool for Distributional Analysis in the Russian Federation
title_short	RUSMOD : A Tool for Distributional Analysis in the Russian Federation
title_full	RUSMOD : A Tool for Distributional Analysis in the Russian Federation
title_fullStr	RUSMOD : A Tool for Distributional Analysis in the Russian Federation
title_full_unstemmed	RUSMOD : A Tool for Distributional Analysis in the Russian Federation
title_sort	rusmod : a tool for distributional analysis in the russian federation
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/603961567514069098/RUSMOD-A-Tool-for-Distributional-Analysis-in-the-Russian-Federation http://hdl.handle.net/10986/32338
_version_	1764476329343844352

RUSMOD : A Tool for Distributional Analysis in the Russian Federation

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