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EUROMOD - Tax-benefit microsimulation model for the European Union

New EUROMOD public release (I4.0+)

26 Jan 2022

A new public version of EUROMOD has been released! It includes new model (I4.0+), new software (3.4.7) and new data (based on SILC 2019). Download links to model and software can be found in the Access EUROMOD area. The data is already available in S-CIRCABC if you were granted generic permission to EUROMOD input data after 6 September 2021. Otherwise please follow the instructions here to gain access here.

What's new?

Compared to the previous public release (I3.0+) it includes:

POLICIES AND FUNTIONALITIES

  • New policy systems: 2021. Updated in relation to previous beta versions.
  • Updated uprating factors up to 2021 and correction of errors/bugs.
  • Change in the system/data configuration.  Each EUROMOD input database (e.g. 2019) is set to be available, by default, for the simulation of the best-match policy system (2018) and three subsequent years (2019/20/21). This is to ensure good quality simulation results. However, users are free to manually change this configuration and use any data-system combination.   
  • Updated COVID-19-related policies and “TransLMA_cc” (experimental labour market transitions) for 2020-2021. COVID-19-related policies are not included in the baselines and can only be simulated with the LMA Add-on, which requires either a modified input file or the activation of the TransLMA_cc to account for labour market transitions.
    • Updated statistics: the selection of individuals undergoing labour market transitions, as it is modelled in TransLMA_cc, is based on statistics provided either by EUROMOD National Teams or by Eurostat on the basis of the Labour Force Survey or administrative data. Statistics for 2020 were updated. Most of the statistics for 2021 are still n/a, so they are set to zero. However, users can easily modifiy these values.
    • Shocks in self-employment income: the TransLMA_cc now also allows the possibility to simulate a shock in self-employment income in countries where monetary compensation schemes for self-employed are not simulated (BG, EE, HU, IE, LU, NL, SE).

DATA

  • New EUROMOD input data for 2019 (income reference year: 2018). Updated in relation to previous beta versions.
  • Eurostat EMSD databases. The EUROMOD 2019 input data for 10 countries (AT, BE, BG, CZ, ES, FR, HR, HU, MT, NL) is based on the EUROMOD SILC database (EMSD) generated by Eurostat. The extension to the remaining countries expected for the upcoming years. The EMSD includes all UDB (User Database) variables, as well as national SILC data supplied by National Statistical Institutes and EUROMOD variables created and imputed by Eurostat because of restricted data access or in-house knowledge.
  • New DRD codebook: in addition to the DRD files for each dataset, a single codebook gathers all the variable names and definitions in the latest datasets (2019) for all  EUROMOD countries. Available here.

ADD-ONS

  • Labour Market Adjustments (LMA): updated to work with 2021 systems. Changed assumption for the calculation of “lunmy” variable (months in unemployment).
  • Net Replacement Rate (NRR): updated for all systems. In EUROMOD I3.0+ only 2015-2020 systems were enabled. Now all systems are active, except a few cases and only for 2005/6, where the variable “ysemy” (months of work for self-employed) is not available..
  • Tax Compliance Adjustment (TCA): no changes, it works with the new 2021 systems.
  • Marginal Tax Rate (MTR): updated to work with 2021 systems.

PLUG-INS AND EXTENSIONS

  • In-depth analysis: available from software version 3.4.3, it allows users to analyse with great flexibility the outcome of policy reforms. Slides and video of a dedicated training are now available here.
  • Hypothetical Household Tool (HHoT): updated to work with 2021 systems.
    • Introduction of 2021 data and average wages
    • More example households: now coinciding with those included in the EUROMOD-JRC Interface.

SOFTWARE

  • Software version 3.4.7 with the following improvements:
    • New visual identity, which affects the desktop icon, the icon in the windows tool bar and the EUROMOD software background.
    • HHoT: new version 1.2.9.

DOCUMENTATION

OTHER CHANGES