%0 Report %A Colombino, Ugo %A Islam, Nizamul %T Optimal Tax-Transfer Rules under Equilibrium and New Labour Demand Scenarios %D 2020 %8 2020 Jul %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 13541 %U https://www.iza.org/index.php/publications/dp13541 %X 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. %K empirical optimal taxation %K microsimulation %K microeconometrics %K evaluation of tax-transfer rules %K equilibrium %K labour demand shocks