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Tremod: a microsimulation model for the Province of Trento

Project researchers

In 2013 FBK-IRVAPP developed TREMOD, a tax-benefit microsimulation model for the Italian province of Trento (Italy). TREMOD is a flexible tool that allows static simulation of the effects of different types of public policies on a plurality of outcomes such as, for example, individuals’ and households’ income and well-being. TREMOD is based upon the Italian module of the EUROMOD platform microsimulation model and its main strength is the high quality of the data used for its construction. The input database has been obtained by matching survey data (derived from a local representative survey on households' life conditions, Indagine sulle condizioni di vita delle famiglie trentine, ICFT, carried out by the statistical office of the Province of Trento) with administrative data on individual income tax returns. This aspect is one of the main strengths of TREMOD compared with other experiences in microsimulation modelling. The combination of survey and administrative data ensures good precision in the simulations and will allow for the integration of other administrative data sources including pension and labour market records. The project has been carried out upon the agreement <Panel> signed by FBK-IRVAPP and ISPAT within the Memorandum of understanding for the Realization of Statistical Analyses.