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Microsimulation as a tool for evaluating redistribution policies

  • François Bourguignon

    (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris, The World Bank - The World Bank)

  • Amadéo Spadaro

    (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris, Universitat de les Illes Balears - Universitat de les Illes Balears)

During the last twenty years, microsimulation models have been increasingly applied in qualitative and quantitative analysis of public policies. This paper provides a discussion on microsimulation techniques and their theoretical background as a tool for the analysis of public policies with particular attention to redistribution and social policies. Basic principles in using microsimulation models and interpreting their results are analyzed, with particular emphasis on tax incidence, redistribution and poverty analysis. Social welfare analysis permitted by microsimulation techniques is also discussed. Finally, the paper points to limits of present approaches and directions for future research.

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Paper provided by HAL in its series PSE Working Papers with number halshs-00590863.

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Date of creation: Jan 2005
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Handle: RePEc:hal:psewpa:halshs-00590863
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  1. François Bourguignon & Maurizio Bussolo & Luiz A. Pereira da Silva, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution : Macro-Micro Evaluation Techniques and Tools," World Bank Publications, The World Bank, number 6586.
  2. Bourguignon, F. & Chiappori, P. & Hugounenq, R., 1992. "Exploring the Distribution and Incentive Effects of Tax Harmonization," DELTA Working Papers 92-06, DELTA (Ecole normale supérieure).
  3. Joel Slemrod & Shlomo Yitzhaki & Joram Mayshar, 1991. "The Optimal Two-Bracket Linear Income Tax," NBER Working Papers 3847, National Bureau of Economic Research, Inc.
  4. Duclos, Jean-Yves, 1995. "Modelling the take-up of state support," Journal of Public Economics, Elsevier, vol. 58(3), pages 391-415, November.
  5. Duclos, Jean-Yves & Makdissi, Paul & Wodon, Quentin, 2003. "Poverty-Efficient Transfer Programs: The Role of Targeting and Allocation Rules," Cahiers de recherche 0305, CIRPEE.
  6. François Bourguignon & Francisco H. G. Ferreira & Phillippe Leite, 2003. "Conditional cash transfers, schoolingand child labor: micro-simulating bolsa escola," Textos para discussão 477, Department of Economics PUC-Rio (Brazil).
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