Application of agent-based models for estimating the effects of different tax regimes

The article analyses the impact of implementing progressive taxation on individuals' welfare. An agent-based model was proposed, allowing for the consideration of income heterogeneity among individuals and the evaluation of the effects of various tax regimes based on micro-level simulations. Estimates were made for three different personal income tax rates applied in Russia during various time periods, as well as for an additional regime with stricter rate progression. Statistical data on the income distribution of Russian households were used. To ensure the completeness of the study, results were examined, taking into account the different elasticity of agents' utility from the quantity of public goods. According to the modelling results, no significant welfare growth was observed under the implemented tightening of the taxation system, although the reduction of inequality in society was still revealed. Possible justifications of the obtained results from both economic and technical sides are proposed.