Tax-benefit microsimulation models are a conventional mechanism that allow the impact of cash transfers on the general population to be measured and that allow the impact of modifications to the social grant system, including the development of new grants to be measured by examining their impact on the incomes of a representative sample of the population.
Tax-benefit microsimulation models are, therefore, usually based on nationally representative household microdata, and enable researchers and policy analysts to calculate the impact of taxes, social contributions and cash benefits on household incomes. The financial impact of existing or hypothetical tax and benefit arrangements can be quantified in terms of the extent to which they reduce poverty and inequality, their cost, and their impact on different sub-groups of the population such as children.
The Centre for the Analysis of South African Social Policy (CASASP) proposed to develop a tax-benefit microsimulation model for Namiba (‘NAMOD’).
DSPI Principal Investigator: Professor Michael Noble
Funded by: UNICEF