MIMIC; An Applied General Equilibrium model for The Netherlands

MIMIC is CPB’s applied general equilibrium model for the Dutch economy. The model is designed to help Dutch policymakers investigate the structural labormarket implications of changes in the systems of taxation and social insurance. MIMIC combines a rich theoretical framework based on modern economic theories, a firm empirical foundation, and an elaborate description of the actual tax and social insurance systems in the Netherlands. The theoretical foundation of the model implies that one can interpret the model results rather easily in terms of rational microeconomic behavior, despite the disaggregated nature of the model and its rich institutional detail. This institutional detail makes the model especially relevant for policymaking.