Tax-benefit microsimulation model for Poland – SIMPL2003

Microsimulation model (SIMPL03) uses data from the households budget sample surveys in connection with programmed tax-benefit system to calculate theoretical and hypothetical incomes. Information contained in data on households incomes usually enable calculation only total “real” income. Microsimulation models with calculated “theoretical” and “hypothetical” incomes enable inter alia estimation of changes in households incomes caused by made or planned reforms of tax-benefit instruments. In the article tax-benefit model for Poland using data obtained from the households budget survey 2003 was presented and the model quality trough the comparison of simu­lation results with the available administrative data was evaluated. Presented model quality evaluation shows that SIMPL model is not far different from other European tax–benefit models as far as quality results are concerned. It also creates the possibility to conduct surveys on financial motivation influence on decision on the labour market.