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

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Author Info
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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Publisher 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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Related research
Keywords: microsimulation; applied CGE analysis; linked micro-macro models;

Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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