Sequential macro-micro modelling with behavioural microsimulations
AbstractThis paper presents a sequential methodology that combines a macroeconomic CGE model with a behavioural microsimulation, illustrates the approach with applications, and discusses its merits and shortcomings. The microsimulation, based on a household income generation model, allows for incorporating individual fixed effects into macro-micro analysis. We argue that one of the main merits of the sequential approach is its flexibility. However, this flexibility comes at the cost of theoretical inconsistency.
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Bibliographic InfoArticle provided by Interational Microsimulation Association in its journal International Journal of Microsimulation.
Volume (Year): 3 (2010)
Issue (Month): 1 ()
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Web page: http://ima.natsem.canberra.edu.au/index.htm
CGE model; behavioural microsimulation; applied model; developing countries;
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