This note describes a simple method to adjust top incomes in the underlying input data of ECUAMOD, the tax-benefit model for Ecuador, based on information from administrative tax records. The note is based on ECUAMOD version 1.4, which uses the National Survey of Income and Expenditures of Urban and Rural Households in Ecuador (Encuesta Nacional de Ingresos y Gastos de Hogares Urbanos y Rurales, ENIGHUR), 2011–12, as input data for tax-benefit simulations. The method illustrated for Ecuador might provide helpful insights for similar exercises in other countries.
