Extending the range of distributional measures in MITTS
The objective of this project is to extend the range of distributional measures in MITTS to facilitate the analysis of policy reforms. The availability of distributional analyses in MITTS-B would enable us to compare changes in poverty and inequality in the static environment (MITTS-A) with the expected changes when accounting for behavioural changes in labour supply (MITTS-B). A simulation comparing the effects on poverty and inequality of a policy change with and without accounting for behavioural changes will illustrate the differences in outcomes using MITTS-A and MITTS-B. Including measures of the distribution of employment, jobless households in particular, is crucial when evaluating certain policy proposals with an explicit goal of reducing the number of families out of work.
An extension of this analysis, which we may be interested in pursuing, is the introduction of social welfare measures into MITTS.
More information about extending the range of distributional measures in MITTS (pdf 149KB)
The Melbourne Institute contact for this project is Dr Guyonne Kalb.
Project was completed in 2003.
Research papers arising from the project are:
No. |
Melbourne Institute Working Paper Title |
| 23/2003 | Income Distribution in Discrete Hours Behavioural Microsimulation Models: An Illustration of the Labour Supply and Distributional Effects of Social Transfers |
| 21/2003 | Evaluating the Income Redistribution Effects of Tax Reforms in Discrete Hours Models |