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Introduction: The Use of Simulation Models in Policy Analysis

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  • Guyonne Kalb

    (The University of Melbourne)

Abstract

This is an introduction to the papers in this special issue on policy simulations discussing a variety of simulation models. Simulation modelling has become a powerful tool to analyse hypothetical and actual policy changes. This issue contains analyses based on both macro- and micro-level data. The two macroeconomic-oriented papers use a General Equilibrium modelling approach with macro-level data, whereas the three microeconomic-oriented papers use detailed micro-level data to replicate the actual financial situation of Australian/New Zealand households by applying the rules and formulas of the taxation and social security systems for a sample representing the population. This introduction also provides an overview of directions for extension and improvement of models and the development of new types of models, combining micro and macro aspects.

Suggested Citation

  • Guyonne Kalb, 2004. "Introduction: The Use of Simulation Models in Policy Analysis," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(1), pages 1-12, March.
    • Handle: RePEc:ozl:journl:v:7:y:2004:i:1:p:1-12
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    References listed on IDEAS

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    2. John Creedy & Justin Van De Ven, 2001. "Decomposing Redistributive Effects of Taxes and Transfers in Australia: Annual and Lifetime Measures," Australian Economic Papers, Wiley Blackwell, vol. 40(2), pages 185-198, June.
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    5. John Creedy & Guyonne Kalb & Hsein Kew, 2003. "Flattening the Effective Marginal Tax Rate Structure in Australia: Policy Simulations Using the Melbourne Institute Tax and Transfer Simulator," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(2), pages 156-172, June.
    6. John Creedy & Alan Duncan, 2002. "Behavioural Microsimulation with Labour Supply Responses," Journal of Economic Surveys, Wiley Blackwell, vol. 16(1), pages 1-39, February.
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    8. John Creedy & Guyonne Kalb, 2001. "Measuring Welfare Changes With Nonlinear Budget Constraints in Continuous and Discrete Hours Labour Supply Models," Melbourne Institute Working Paper Series wp2001n09, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    9. John Creedy & Guyonne Kalb, 2005. "Discrete Hours Labour Supply Modelling: Specification, Estimation and Simulation," Journal of Economic Surveys, Wiley Blackwell, vol. 19(5), pages 697-734, December.
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    11. Alan Duncan & Mark N. Harris, 2002. "Simulating the Behavioural Effects of Welfare Reforms Among Sole Parents in Australia," The Economic Record, The Economic Society of Australia, vol. 78(242), pages 264-276, September.
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    More about this item

    Keywords

    Mathematical Methods and Programming: Other; Fiscal Policies and Behavior of Economic Agents: General; Taxation; Subsidies; and Revenue: General; Welfare and Poverty: Government Programs; Provision and Effects of Welfare Programs;
    All these keywords.

    JEL classification:

    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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