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Introduction: The Use of Simulation Models in Policy Analysis


  • Guyonne Kalb

    () (The University of Melbourne)


This is an introduction to the papers in this special issue on policy simulations discussing a variety of simulation models. Simulation modelling has become a powerful tool to analyse hypothetical and actual policy changes. This issue contains analyses based on both macro- and micro-level data. The two macroeconomic-oriented papers use a General Equilibrium modelling approach with macro-level data, whereas the three microeconomic-oriented papers use detailed micro-level data to replicate the actual financial situation of Australian/New Zealand households by applying the rules and formulas of the taxation and social security systems for a sample representing the population. This introduction also provides an overview of directions for extension and improvement of models and the development of new types of models, combining micro and macro aspects.

Suggested Citation

  • Guyonne Kalb, 2004. "Introduction: The Use of Simulation Models in Policy Analysis," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(1), pages 1-12, March.
  • Handle: RePEc:ozl:journl:v:7:y:2004:i:1:p:1-12

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    More about this item


    Mathematical Methods and Programming: Other Fiscal Policies and Behavior of Economic Agents: General Taxation; Subsidies; and Revenue: General Welfare and Poverty: Government Programs; Provision and Effects of Welfare Programs;

    JEL classification:

    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs


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