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The ZEW combined microsimulation-CGE model: innovative tool for applied policy analysis

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  • Clauss, Markus
  • Schubert, Stefanie

Abstract

This contribution describes the linkage of microsimulation models and computable general equilibrium (CGE) models using two already established models called “STSM” and “PACE-L” used by the Centre for European Economic Research. This state of the art research method for applied policy analysis combines the advantages of both model types: On the one hand, microsimulation models allow for detailed labor supply and distributional effects due to policy measures, as individual household data is used. On the other hand, by using a general equilibrium framework, labour market responses, such as wage and labour demand reactions are taken into account. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 09-062.

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Date of creation: 2009
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Handle: RePEc:zbw:zewdip:09062

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Keywords: microsimulation; applied CGE analysis; linked micro-macro models;

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