BUG: input variable `vermögen_bedürft_bg` uses endogeneous grouping

iza-institute-of-labor-economics / gettsim

The GErman Taxes and Transfers SIMulator

https://gettsim.readthedocs.io/

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BUG: input variable `vermögen_bedürft_bg` uses endogeneous grouping #724

Closed ChristianZimpelmann closed 5 months ago

ChristianZimpelmann commented 5 months ago

Bug description

we request the input variable vermögen_bedürft_bg however this grouping is endogeneous. Also, it is used for hh-wide transfers like Wohngeld which seems incorrect if bg and hh differ. Probably should be vermögen_bedürft_hh (which we somehow need to distribute on Bedarfsgemeinschaften) or we request individual-level wealth?

See also #412

hmgaudecker commented 5 months ago

Great catch, thanks a lot!

Despite my comment in #412, I think individual-level is the way to go now. It is ultimately what matters in many cases and anything else would be introducing lots of complexity on the GETTSIM side.

At some point, we need a data preparation guide... There we could explain and make suggestions like trying different ways for distributing wealth measured at some group level.