Dynamic Scoring

FULL TITLE: Dynamic Scoring of Tax Reforms in Real Time

This project measures the fiscal and redistributive effects of hypothetical tax reforms implemented in EU Member States, taking into account the behavioural effects resulting from the adjustment of the labour supply and the economy-wide reaction to tax policy changes, i.e. the so-called second-round effects.

In particular, a real-time dynamic scoring exercise is developed by linking the microsimulation model EUROMOD with a vector autoregressive model, including fiscal and labour market variables, in order to account for second-round effects to perform fiscal forecasting analysis.