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LINDA: A dynamic microsimulation model for analysing policy effects on the evolving population cross-section

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  • Justin van de Ven

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Abstract

This paper describes a structural dynamic microsimulation model that generates individual-specific data over a range of demographic and economic characteristics at discrete intervals through-out a simulated time horizon. The model is designed to analyse the distributional implications of policy alternatives over appreciable periods of time. This focus motivates endogenous simulation of savings and labour supply decisions, taking explicit account of uncertainty regarding the evolving decision environment. In contrast to the existing literature of savings in context of uncertainty, the model described here takes an overlapping generations form which is adapted to the needs of policy makers, and which has distinct advantages for empirical investigations.

Suggested Citation

  • Justin van de Ven, 2016. "LINDA: A dynamic microsimulation model for analysing policy effects on the evolving population cross-section," National Institute of Economic and Social Research (NIESR) Discussion Papers 459, National Institute of Economic and Social Research.
  • Handle: RePEc:nsr:niesrd:459
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    File URL: http://www.niesr.ac.uk/sites/default/files/publications/dp459.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Justin Van de Ven, 2016. "Parameterising the LINDA microsimulation model of benefit unit savings and labour supply," National Institute of Economic and Social Research (NIESR) Discussion Papers 464, National Institute of Economic and Social Research.
    2. van de Ven, Justin, 2017. "SIDD: An adaptable framework for analysing the distributional implications of policy alternatives where savings and employment decisions matter," Economic Modelling, Elsevier, vol. 63(C), pages 161-174.
    3. repec:ijm:journl:v109:y:2017:i:1:p:135-166 is not listed on IDEAS
    4. repec:ijm:journl:v10:y:2017:i:1:p:135-166 is not listed on IDEAS

    More about this item

    Keywords

    dynamic programming; savings; labour supply;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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