1. Exercise 4 Reforming social assistance in Bulgaria
Rent per month needed for housing benefits.
Hours vary from 0-80 (per week)

2. Exercise 5
Reforming the health tax in Denmark

3. Exercise 6
Adding a new means-tested income support benefit for families with children in compulsory education in Croatia

4. End of session

5. InGRID autumn school in ‘Cross country microsimulation’ Day 3
Miko Tammik, Andrea Papini, Kostas Manios, Diego Collado
ISER, University of Essex
21-23 May 2018
Course based on EUROMOD v. H1.0+

6. Outline: Day 3 Morning (9:30-12:30 with a break at 11:00)
Assessment (tax) units in EUROMOD
Hands-on practice: Exercise 7
Afternoon (14:00-17:00 with a break at 15:30)
Hands-on practice: Exercises 8 & 9
Presentations by participants
Using EUROMOD after the course
Q&A

7. Assessment (Tax) Unit

8. 8
Assessment Unit
Unit: group of household members to be considered together
Function DefTU, used at policy TUDef_cc or anywhere
Defined the first time it is used by the model (see func_UpdateTU)
Name convention: tu_xxxxxx_cc defined

9. Types of assessment units9
Types of assessment units
Parameter type: defines the composition of the tax unit
HH: all individuals of the household are in the same unit.
IND: each individual of the household forms its own unit.
SUBGROUP: individuals determined by parameter members form an unit. The household may be split into several units of different size.
Micro data used by EUROMOD-
sample of households
all individuals in a selected household
if assessment unit includes individuals outside the household cannot be reconstructed exactly
Individual
Household
Subgroup

10. Some examples of assessment units10
Some examples of assessment units
description
idhh
idperson
idpartner
idmother
idfather
dag
Household
Individual
family
typical family 1
101
102 30 A 28 B
103 3 C
104 D
couple.without children 2
201
202 56 55
lone parent
301 35
302 6
single 4
401 25
two singles living together 5
501 22
502 23
large family
601
602
606 48 45
603 20
604 15
605 10 E 70 F

11. Head of a tax unit The head of a tax unit is11
Head of a tax unit
The head of a tax unit is
the richest member of the unit (System Configuration: Income for Head Definition)
the oldest
the lowest idperson
ExtHeadCond: further conditions (e.g., female)

12. 12
Members of a tax unit (1)
members usually defines relations with respect to the head of the unit
possible values
Partner
Children (Own/ Loose, dependent...etc)
Dependent parents
Dependent Relatives
status of each member (i.e. Partner, OwnDepChild…) is defined by a xxxCond parameter
PartnerCond
OwnChildCond
DepChildCond
OwnDepChildCond
LooseDepChildCond
DepParentCond
DepRelativeCond

13. Members of a tax unit (2)
Condition parameters and default values fully documented in Help

14. 14
Members of a tax unit (3)
head: subsequent variable refers to the head of the unit
partner: subsequent variable refers to the partner of the head of the unit
{default} default setting, can be combined with further specifications

15. 15
Members of a tax unit (4)
DepChildCond: determines who is dependent children
OwnDepChild: “a son or daughter”. See OwnChildCond
LooseDepChild: “someone who is depend child but doesn’t cohabit with parent/s”

16. Avoiding to split up families16
Avoiding to split up families

17. Using conditions which refer to income17
Using conditions which refer to income
If the assessment unit is bigger than the individual, the level of interpreting monetary variables or income lists must be considered carefully (using footnotes)
Queries can be used to define income conditions (e.g. GetParentIncome, GetCoupleIncome, …)

18. Updating assessment units18
Updating assessment units
The tax unit is defined/ calculated the first time it is used by the model: household members are assigned to respective units once an assessment unit is first used.
This assignment is not changed with subsequent uses, even if circumstances change.
However, the reassessment of the units can be enforced by using the function UpdateTU.

19. Tax unit in output file idhh idperson idpartner idmother idfather dag
ils_origy
il_tinty
tu_tinfajt_headid
tu_tinfajt_ispartner
tu_tinfajt_isdepchild
tu_tinfajt_isdepparent
tu_tinfajt_isloneparent 1
101
102 65 60
103 30
104 28
166
147 2
201
202 29
1,085
1,007 25
953
891
203 3
204 52
5,201
5,202
5,206
5,205 40
1,954
1,831 38
5,203 10
5,204 15 70 92
9,201 80
9,202
3,740
3,502
9,203 34
2,483
2,324
9,204 11
func_DefTu on
Name
tu_tinfajt
Type
SUBGROUP
Members
Partner & OwnDepChild & DepParent
PartnerCond
{Default} & {IsMarried}
DepChildCond
{Default} & {dag<25} & {il_tinty#1<=8000#y}
DepParentCond
{Default} & {dag>65} & {il_tinty#1<=8000#y}
#1_level
tu_individual_es
AssignDepChOfDependents
yes
AssignPartnerOfDependents
LoneParentCond
{default} & !{IsMarried} & {nDepChOfPerson > 0}

20. Exercise 7
Reforming the UK Child Benefit by narrowing its age condition
Rent per month needed for housing benefits.
Hours vary from 0-80 (per week)

21. End of session

22. Exercise 8
Introducing an in-work benefit in Cyprus

23. Exercise 9
Introducing the Belgian social insurance contributions for pensioners & survival pensioners in the UK

24. Presentation by participants

25. Using EUROMOD after the course

26. Model access Web https://www.euromod.ac.uk/
Statistics on the distribution and decomposition of disposable income
Country Reports
Working Papers
Model is freely available for non-commercial use
contact to obtain the link for downloading (incl. manuals)

27. Data Access conditions
Data access is subject to conditions set by the original data provider
EU-SILC UBD
Access depends on being in an institution recognised by Eurostat as a “research entity”. For more info see
In a second stage you need to be part of a “research proposal” accepted by Eurostat that includes the use of EUROMOD
When you are ready to submit the second stage proposal contact
Allow at least 4 months for the whole process
Other data: relatively straightforward procedures

28. Responsibilities of EUROMOD hand-on users
Respect data access rules and conditions
Acknowledge EUROMOD when it is used
Submit all papers using EUROMOD for inclusion in the WP series
Take responsibility for your own use of the model
Tell us about bugs or errors
Keep us informed about what you are working on and when you are working actively: that way we can keep you informed of relevant changes

29. Q&A

30. End of session