How EUROMOD - and analysis based on it - is being used by policy makers.
Analysis using EUROMOD is increasingly used by European Commission services, appearing regularly in DG-EMPL’s annual publication Employment and Social Developments in Europe (2012, 2014, 2015, 2016, 2018) and the DG-TAXUD/DG-ECFIN annual reports Tax Reforms in EU Member States (2014, 2015) and Tax Policies in the European Union (2016).
From the 2015 European Semester onward, a number of the Country Reports published by the Commission have included EUROMOD-based analysis.
Tables and figures based on EUROMOD output have appeared in major publications of other international organisations, notably the IMF’s Inequality and Fiscal Policy (2015) and the OECD’s In It Together: Why Less Inequality Benefits All (2015).
Reports and applications using EUROMOD have also shown great potential for informing policy debates at the national level. In Greece, for example, reports by the European Commission and the World Bank have incorporated EUROMOD analysis in reviews of particular policies, as has the Yearly Report of the Director of the Bank of Greece (2015).
EUROMOD's use as a tool for policy makers in the UK is growing.
Since 2016 new powers on the regulation of income tax and some benefits have been devolved to the Scottish Parliament and Government. This has led to the regular use of the model by the Scottish Parliament Information Centre (SPICe); see, inter alia:
- Income Tax in Scotland 2017, SPICe Briefing report SB 17-84
- Tax progressivity and the Scottish Rate of Income Tax, SPICe Briefing report SB 16-15
Via collaboration with SPICe, analysis using EUROMOD has also been published by NHS Scotland.
In Wales, the Welsh Government has modelled policies using EUROMOD and interest is expected to strengthen when the partial devolution of income tax powers to Wales occurs from 2019. In the cases of SPICe and the Welsh Government, ongoing collaboration with the EUROMOD-UK team at Essex has increased capacity among researchers at those instututions.
In recent years, the team at Essex has also been commissioned to undertake a range of impact assessments and policy analyses, including for the Low Pay Commission, the Child Poverty Action Group and Gingerbread. Other groups, such as the Citizen's Income Trust, continue to make regular use of the UK component of EUROMOD.
Using microsimulation to provide flash estimates ("nowcasts") of the at-risk-of-poverty rate (AROP) and the income distribution generally, given the time lag of 2-3 years in the provision of statistics based on EU-SILC, offers the possibility to integrate distributional issues into economic discussions and policy planning.
In collaboration with Eurostat we are exploring ways to jointly produce "flash estimates" of income distribution using EUROMOD for EU-28, in a manner that is as timely, efficient and robust as possible. See Eurostat's new set of experimental statistics.
EUROMOD’s flexibility, both of approach and software, means that it can be adapted to shortcut the process of building tax-benefit models with potentially comparable outputs for any country or region.
As part of the ongoing SOUTHMOD project funded by UNU-WIDER, EUROMOD will provide the "engine" that will power new microsimulation models for seven countries: Ghana, Ethiopia, Zambia, Tanzania, Mozambique, Ecuador and Vietnam. The same project will also see updates to existing spin-off models for South Africa (SAMOD) and Namibia (NAMOD), managed by Southern African Social Policy Research Insights (SASPRI).
Several other countries/regions have developed - or are developing - tax-benefit models based on the underlying EUROMOD platform: Australia (ATM), Russia (RUSMOD), Macedonia (MAKMOD), Serbia (SRMOD), Italy (Trento) (TREMOD) and Croatia (miCROmod).