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Microsimulation as a tool for evaluating redistribution policies

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François Bourguignon
Amedeo Spadaro

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Abstract

During the last twenty years, microsimulation models have been increasingly applied in qualitative and quantitative analysis of public policies. This paper provides a discussion on microsimulation techniques and their theoretical background as a tool for the analysis of public policies with particular attention to redistribution and social policies. Basic principles in using microsimulation models and interpreting their results are analyzed, with particular emphasis on tax incidence, redistribution and poverty analysis. Social welfare analysis permitted by microsimulation techniques is also discussed. Finally, the paper points to limits of present approaches and directions for future research.

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Paper provided by PSE (Ecole normale supérieure) in its series PSE Working Papers with number 2005-02.

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Date of creation: 2005
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Handle: RePEc:pse:psecon:2005-02

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kristian Orsini & Amedeo Spadaro, 2005. "Sharing resources within the household: a multi-country microsimulation analysis of the determinants of intrahousehold "strategic weight" differentials and their distributional outcomes," PSE Working Papers 2005-04, PSE (Ecole normale supérieure). [Downloadable!]
    Other versions:
  2. Olivier Bargain & Tim Callan, 2007. "Analysing the Effects of Tax-Benefit Reforms on Income Distribution: A Decomposition Approach," IZA Discussion Papers 3078, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Peichl, Andreas, 2008. "The Benefits of Linking CGE and Microsimulation Models: Evidence from a Flat Tax Analysis," IZA Discussion Papers 3715, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Rolf Aaberge and Ugo Colombino, 2006. "Designing Optimal Taxes with a Microeconometric Model of Household Labour Supply," Discussion Papers 475, Research Department of Statistics Norway. [Downloadable!]
    Other versions:
  5. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2007. "Electricity Reforms in Mali: A Macro–Micro Analysis of the Effects on Poverty and Distribution," Cahiers de recherche 07-10, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  6. Sebastian Rausch & Thomas F. Rutherford, 2008. "Computation of Equilibria in OLGModels with Many Heterogeneous Households," Economics working paper series 08/90, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich. [Downloadable!]
  7. Ahmed, Vaqar & O' Donoghue, Cathal, 2007. "CGE-Microsimulation Modelling: A Survey," MPRA Paper 9307, University Library of Munich, Germany. [Downloadable!]
  8. José M. Labeaga, Xisco Oliver & Xisco Oliver & Amedeo Spadaro, . "Discrete choice models of labour Supply, behavioural microsimulation and the Spanish tax reforms," Working Papers 2005-14, FEDEA. [Downloadable!]
    Other versions:
  9. Luc Savard & Stéphane Mussard, 2005. "Horizontal and Vertical Redistribution and Micro-simulation," Cahiers de recherche 05-03, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  10. Dorothée Boccanfuso & Luc Savard, 2005. "Impact Analysis of the Liberalization of Groundnut Production in Senegal: A Multi-household Computable General Equilibrium Model," Cahiers de recherche 05-12, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  11. Sonsbeek, J.M. van & Gradus, R.H.J.M., 2005. "A microsimulation analysis of the 2006 regime change in the Dutch disability scheme," Serie Research Memoranda 0012, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
  12. Kristian Orsini & Amedeo Spadaro, 2006. "Strategic weight within couples: a microsimulation approach," PSE Working Papers 2006-32, PSE (Ecole normale supérieure). [Downloadable!]
    Other versions:
  13. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2007. "Electricity Reforms in Senegal: A Macro–Micro Analysis of the Effects on Poverty and Distribution," Cahiers de recherche 07-12, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  14. Riccardo Magnani & Jean Mercenier, 2007. "On linking microsimulation and applied GE by exact aggregation of heterogeneous discrete-choice making agents," THEMA Working Papers 2007-06, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise. [Downloadable!]
  15. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2005. "A Poverty and Inequality Impact Assessment of Liberalization of Water Utility in Senegal: A Macro-Micro Analysis," Cahiers de recherche 05-13, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  16. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2008. "Distributional impact of global warming environmental policies: A survey," Cahiers de recherche 08-14, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
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