MK-MOD – Tax & Benefit Microsimulation Model
Finance Think maintains and adjusts MK-MOD – Tax & Benefit Microsimulaton Model for Macedonia. The model enables calculation of the effects of taxes and benefits on household incomes and work incentives for the population of the country.
MK-MOD is a static model, applying user-defined tax and benefit policy rules to micro-data on individuals and households, calculates the effects of these rules on household income, and then outputs results – still at the micro level. The model is STATA-based.
We use MK-MOD to simulate as much as possible of the tax and benefit components of household disposable income, by simulating the following instruments: income taxes, social contributions, family benefits, social assistance and other income-related benefits.
MK-MOD belongs to the family of EUROMOD – the Tax-Benefit Microsimulation Model for the European Union.
MK-MOD can be linked to, or used alongside, other types of model (behavioural, macro-economic or environmental) as a tax-benefit policy calculator or to provide a distributional perspective.