Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/219469 
Year of Publication: 
2018
Series/Report no.: 
EconPol Working Paper No. 07
Publisher: 
ifo Institute - Leibniz Institute for Economic Research at the University of Munich, Munich
Abstract: 
This paper presents the first dynamic scoring exercise linking a microsimulation and a dynamic general equilibrium model for Europe. We illustrate our novel methodology by analysing hypothetical reforms of the social insurance contributions system in Belgium. Our approach takes into account the feedback effects resulting from adjustments and behavioural responses in the labour market and the economy-wide reaction to tax policy changes, essential for a comprehensive evaluation of the reforms. We find that the self-financing effect of a reduction in employers' social insurance contribution is substantially larger than that of a comparable reduction in employees' social insurance contributions.
Document Type: 
Working Paper

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