TAXIPP

TAXIPP is the IPP’s microsimulation model. It is based upon the long experience in micro-simulation techniques at the Paris School of Economics (read the history and bibliography part) and is maintained by a permanent team at the IPP for use in both academic projects and in public debate.

TAXIPP relies on different kinds of database. The data core is made of administrative sources (income tax returns, local tax returns). This information is completed by survey data.
The current version of TAXIPP (version 1.0) simulates the French tax and benefit system on a database coming from a statistical matching made by IPP between two different sources. The first source, the « FELIN » database, produced by the French Ministry of the Economy, is a sample of income tax returns, with an exhaustive representativeness of the top of the income distribution. The second one, the “Enquête revenus fiscaux et sociaux” (ERFS, INSEE), is a combination of the French labour force survey and administrative data collected for each household in the scope of this survey. Two databases are also used in separate simulation modules. The « FIDELI » database, produced by the French Institute of National Statistics and Economic Studies (INSEE) and made of the universe of French households, is used to simulate local taxation. The survey “Budget des familles” (BdF, INSEE), on households’ consumption, is mustered for indirect taxation.

The TAXIPP model uses the opensource calculator OpenFisca. This calculator of the French tax and benefit system is developed by a community IPP belongs to. TAXIPP also uses the IPP tax and benefit tables. These tables, produced by IPP, are a census of all legal parameters needed for the computation of taxes and social benefits.