TY - RPRT AU - Colombino, Ugo AU - Islam, Nizamul TI - Optimal Tax-Transfer Rules under Equilibrium and New Labour Demand Scenarios PY - 2020/Jul/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 13541 UR - https://www.iza.org/index.php/publications/dp13541 AB - 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. KW - empirical optimal taxation KW - microsimulation KW - microeconometrics KW - evaluation of tax-transfer rules KW - equilibrium KW - labour demand shocks ER -