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Microsimulation and policy analysis

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  • Figari, Francesco
  • Paulus, Alari
  • Sutherland, Holly

Abstract

We provide an overview of microsimulation approaches to assess the effects of policy on the income distribution. We focus mainly on the role of tax-benefit policies and review the concept of microsimulation and how it contributes to the analysis of the income distribution in general and policy evaluation in particular. We consider the main challenges and limitations and discuss directions for future developments.

Suggested Citation

  • Figari, Francesco & Paulus, Alari & Sutherland, Holly, 2014. "Microsimulation and policy analysis," ISER Working Paper Series 2014-23, Institute for Social and Economic Research.
  • Handle: RePEc:ese:iserwp:2014-23
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