The Wisconsin Tax Model system

ABSTRACT

A simulation model is a device, generally a computer system, for predicting responses to actions in the real world; a simulation model operates by calculating the effect on given initial conditions which would follow from a set of processes which have been described to the computer. A microfile model is one which incorporates a large mass of sample data about individuals — usually households, persons, or business firms —directly into each simulation (in contrast, a macro-econometric model would employ a relatively small number of statistical averages, moments or correlations.) Empirical studies of taxation economics have relied increasingly on microfile simulation models; most noteworthy is Pechman and Okner's study of U.S. tax incidence[1]Microfile studies of tax incidence at the state level are being performed in Colorado and Wisconsin; the latter study employs the Wisconsin Tax Model, which is the subject of this paper.

INDEX TERMS

Primary Classification:
  K. Computing Milieux
  K.5 LEGAL ASPECTS OF COMPUTING
      K.5.2 Governmental Issues
          Subjects: Taxation

Additional Classification:
  I. Computing Methodologies
  I.6 SIMULATION AND MODELING
      I.6.3 Applications

General Terms:
Theory