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Sequential macro-micro modelling with behavioural microsimulations

Author

Listed:
  • Jann Lay

    (German Institute of Global and Area Studies (GIGA), Hamburg, Germany and University of Göttingen, Germany)

Abstract

This paper presents a sequential methodology that combines a macroeconomic CGE model with a behavioural microsimulation, illustrates the approach with applications, and discusses its merits and shortcomings. The microsimulation, based on a household income generation model, allows for incorporating individual fixed effects into macro-micro analysis. We argue that one of the main merits of the sequential approach is its flexibility. However, this flexibility comes at the cost of theoretical inconsistency.

Suggested Citation

  • Jann Lay, 2010. "Sequential macro-micro modelling with behavioural microsimulations," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 24-34.
    • Handle: RePEc:ijm:journl:v:3:y:2010:i:1:p:24-34
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    File URL: http://ima.natsem.canberra.edu.au/IJM/V3_1/IJM_26.pdf
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    References listed on IDEAS

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    Cited by:

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    2. van Ruijven, Bas J. & O’Neill, Brian C. & Chateau, Jean, 2015. "Methods for including income distribution in global CGE models for long-term climate change research," Energy Economics, Elsevier, vol. 51(C), pages 530-543.
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    4. Mealy, Penelope Ann & Bucker, Joris Joseph Johannes Hendrik & Moura, Fernanda Senra de & Knudsen, Camilla, 2025. "Beyond Green Jobs : Advancing Metrics and Modeling Approaches for a Changing Labor Market," Policy Research Working Paper Series 11262, The World Bank.

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