In the Netherlands, CPB often adopts the MIMIC model to explore the
structural labour market implications of changes in the tax and
social-insurance system. This applied general-equilibrium model
combines microeconomic theory with a rich institutional detail and
a firm empirical basis. This book describes the structure of MIMIC
and discusses a large number of policy measures that have been
proposed during the last five years. Moreover, it elaborates on
proposals that are currently in discussion, such as the flat tax.
To ease the understanding of the model, we also present a core
version with only a few equations.
General
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