@TechReport{iza:izadps:dp13541, author={Colombino, Ugo and Islam, Nizamul}, title={Optimal Tax-Transfer Rules under Equilibrium and New Labour Demand Scenarios}, year={2020}, month={Jul}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={13541}, url={https://www.iza.org/index.php/publications/dp13541}, abstract={We present an extension of the numerical approach to empirical optimal taxation allowed by a peculiar structure of a microeconometric model of labour supply that includes a representation of the demand side. This makes it possible to identify optimal tax-transfer rules while accounting for equilibrium constraints and to evaluate the effects of exogenous labour demand shocks. We provide illustrative examples using the 2015 EU-SILC data set for Italy.}, keywords={empirical optimal taxation;microsimulation;microeconometrics;evaluation of tax-transfer rules;equilibrium;labour demand shocks}, }