%0 Journal Article
%T Integrating Microsimulation Models of Tax Policy into a DGE Macroeconomic Model
%A Jason DeBacker
%A Kerk L. Phillips
%A Richard W. Evans
%J Public Finance Review
%@ 1552-7530
%D 2019
%R 10.1177/1091142118816744
%X This article proposes a method for integrating individual effective tax rates and marginal tax rates computed from a microsimulation (partial equilibrium) model of tax policy with a dynamic general equilibrium model of tax policy that can provide macroeconomic analysis or dynamic scores of tax reforms. Our approach captures the rich heterogeneity, realistic demographics, and tax-code detail of the microsimulation model and allows this detail to inform a general equilibrium model with a relatively high degree of heterogeneity. In addition, we propose a functional form in which tax rates depend jointly on the levels of both capital income and labor income
%K microsimulation
%K effective tax rates
%K marginal tax rates
%K dynamic general equilibrium
%K dynamic scoring
%K static scoring
%U https://journals.sagepub.com/doi/full/10.1177/1091142118816744