The LOTTE System of Tax Microsimulation Models

Microsimulation models of the LOTTE system are key tools for tax policy-making in Norway and are\nextensively used in the budget process. The aim of this paper is to give an overview of the different\nmodules in the LOTTE family – a non-behavioral tax-benefit model for personal income tax (LOTTESkatt), a labor supply model (LOTTE-Arbeid), and a model for distributional effects of commodity\ntaxation (LOTTE-Konsum). In addition to providing descriptions of the designs of the three\nmicrosimulation models, we give examples of how the models are used in practical and academic\nwork.