Division for the Law Model

Division for the Law Model (KLF) is responsible for the Law model and areas related to distribution and incentives to work.

Division for the Law Model (KLF) is responsible for developing and maintaining the Law model, which is a system of microsimulation models used by several other ministries for calculations of revenue, distribution and behavioral outcomes in a variety of legislative areas.

The Danish Ministry of Finance carries out calculations and analysis based on the Law model, which serves as the foundation of policy development. It supports economic reforms concerning welfare payments and taxes as well as the labour market and education.

KLF is responsible for computations of the income distribution, including income inequality, the low-income group, and the effect of political initiatives on income distribution as well as economic incentives to work.

By extension, KLF is responsible for the Danish Ministry of Finance’s annual review of inequality (“Ulighedsredegørelsen”), which among other things presents different measures of income inequality and the economic incentive to work. The review also defines and tracks a broad spectrum of indicators of equal opportunities, that is equality in health and education, as well as intergenerational social mobility among others.