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Microsimulation as a Tool for Evaluating Redistribution Policies

  • François Bourguignon

    (The World Bank and PSE -Paris-Jourdan Sciences Economiques-)

  • Amedeo Spadaro

    ()

    (PSE -Paris-Jourdan Sciences Economiques- and Universitat de les Illes Balears, Palma de Mallorca)

During the last 20 years, microsimulation models have been increasingly applied in qualitative and quantitative analysis of public policies. This paper discusses microsimulation techniques and their theoretical background as a tool for the analysis of public policies. It next analyses basic principles for using microsimulation models and interpreting their results, with emphasis on tax incidence, redistribution and poverty analysis. It then discusses social welfare analysis permitted by microsimulation techniques and points to the limits of present approaches and some directions for future developments.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2006-20.pdf
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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 20.

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Length: 42 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2006-20
Contact details of provider: Web page: http://www.ecineq.org
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