On linking microsimulation and applied GE by exact aggregation of heterogeneous discrete-choice making agents
Our paper contributes to bridge the gap between the microsimulation’s approach and applied GE models, by making use of exact aggregation results from the discrete choice literature: heterogeneous individuals choosing (possibly continuous amounts) within a set of discrete alternatives may be aggregated into a representative agent with CES/CET preferences/technologies. These results therefore provide a natural link between the two policy evaluation approaches. We illustrate the usefulness of these results by evaluating potential effects of population ageing on the dynamics of income distribution and inequalities, using a simple OLG model when individuals have to make leisure/work decisions, and choose a profession among a discrete set of alternatives.
|Date of creation:||2007|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 33 1 34 25 60 63
Fax: 33 1 34 25 62 33
Web page: http://thema.u-cergy.fr
More information through EDIRC
References listed on IDEAS
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.:
- Kehoe, Timothy J & Polo, Clemente & Sancho, Ferran, 1995.
"An Evaluation of the Performance of an Applied General Equilibrium Model of the Spanish Economy,"
Springer, vol. 6(1), pages 115-41, June.
- Timothy J. Kehoe & Clemente Polo & Ferran Sancho, 1994. "An evaluation of the performance of an applied general equilibrium model of the Spanish economy," Working Papers 480, Federal Reserve Bank of Minneapolis.
- Luc Savard, 2003. "Poverty and Income Distribution in a CGE-Household Micro-Simulation Model: Top-Down/Bottom Up Approach," Cahiers de recherche 0343, CIRPEE.
- Arntz, Melanie & Boeters, Stefan & Gürtzgen, Nicole & Schubert, Stefanie, 2006.
"Analysing welfare reform in a microsimulation-AGE model: the value of disaggregation,"
ZEW Discussion Papers
06-76, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Arntz, Melanie & Boeters, Stefan & Gürtzgen, Nicole & Schubert, Stefanie, 2008. "Analysing welfare reform in a microsimulation-AGE model: The value of disaggregation," Economic Modelling, Elsevier, vol. 25(3), pages 422-439, May.
- Timothy J. Kehoe, 2003.
"An evaluation of the performance of applied general equilibrium models of the impact of NAFTA,"
320, Federal Reserve Bank of Minneapolis.
- Timothy J. Kehoe, 2003. "An Evaluation of the Performance of Applied General Equilibrium Models of the Impact of NAFTA," Levine's Working Paper Archive 506439000000000525, David K. Levine.
- Fougere, Maxime & Mercenier, Jean & Merette, Marcel, 2007. "A sectoral and occupational analysis of population ageing in Canada using a dynamic CGE overlapping generations model," Economic Modelling, Elsevier, vol. 24(4), pages 690-711, July.
- Mercenier, Jean & Yeldan, Erinc, 1999. "A Plea For Greater Attention on the Data in Policy Analysis," Journal of Policy Modeling, Elsevier, vol. 21(7), pages 851-873, December.
- repec:cup:cbooks:9780521319867 is not listed on IDEAS
- François Bourguignon & Amedeo Spadaro, 2006.
"Microsimulation as a tool for evaluating redistribution policies,"
Journal of Economic Inequality,
Springer, vol. 4(1), pages 77-106, April.
- François Bourguignon & Amedeo Spadaro, 2006. "Microsimulation as a Tool for Evaluating Redistribution Policies," Working Papers 20, ECINEQ, Society for the Study of Economic Inequality.
- repec:pse:psecon:2005-02 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:ema:worpap:2007-06. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marion Oury)The email address of this maintainer does not seem to be valid anymore. Please ask Marion Oury to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.