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Welfare, Non-Linear Busget Constraints and Behavioural Microsimulation

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Author Info
Creedy, J.
Duncan, A.

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Abstract

This paper provides a technical survey of recent developments in behavioural microsimulation. We discuss the criteria by which models of labour supply may be chosen for application to behavioural microsimulation, and consider how such models may be augmented to control for fixed costs, child-related work costs, preference heterogeneity and endogeneity in wages. We describe methods by which non-linear budgets constraints may be accommodated in estimation, in policy simulation, and in welfare analysis, and discuss how stochastic terms may be factored into the simulation of behavioural responses to some policy shock.

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Publisher Info
Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 688.

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Length: 42 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:mlb:wpaper:688

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Postal: Department of Economics, The University of Melbourne, 5th Floor, Economics and Commerce Building, Victoria, 3010, Australia
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Web page: http://www.economics.unimelb.edu.au
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Related research
Keywords: BEHAVIOUR SIMULATION MICROECONOMICS

Find related papers by JEL classification:
D10 - Microeconomics - - Household Behavior - - - General
C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

Cited by:
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  1. Christophe Muller, 2003. "Female Activity Choice In A Dual Context: An Integrated Model For Formal And Informal Sectors In Cameroon," Working Papers. Serie AD 2003-39, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
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This page was last updated on 2008-11-16.


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