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Analysing Welfare Reform in a Microsimulation-AGE Model

Author

Listed:
  • Melanie Arntz

    (ZEW)

  • Stefan Boeters

    (CPB)

  • Nicole Gürtzgen

    (ZEW)

  • Stefanie Schubert

    (University Essen-Duisburg)

Abstract

We present a fully integrated microsimulation-AGE model that uses the labour market model PACE-L and data from the German Socio-Economic Panel. We use the model to analyse reform proposals designed to encourage labour force participation at the lower end of the wage distribution. A special focus of this paper is on comparing the fully disaggregated version of the model with more aggregated ones in order to pin down in which respects disaggregation can actually further our insights, and in which respects aggregation can be justified

Suggested Citation

  • Melanie Arntz & Stefan Boeters & Nicole Gürtzgen & Stefanie Schubert, 2006. "Analysing Welfare Reform in a Microsimulation-AGE Model," Computing in Economics and Finance 2006 109, Society for Computational Economics.
    • Handle: RePEc:sce:scecfa:109
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    References listed on IDEAS

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    1. Stefan Boeters & Michael Feil & Nicole Gürtzgen, 2007. "Discrete Working Time Choice in an Applied General Equilibrium Model," Computational Economics, Springer;Society for Computational Economics, vol. 29(3), pages 427-427, May.
    2. Cororaton, Caesar B., 2003. "Analyzing the Impact of Philippine Tariff Reform on Unemployment, Distribution and Poverty Using CGE-Microsimulation Approach," Discussion Papers DP 2003-15, Philippine Institute for Development Studies.
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    14. Boeters Stefan & Gürtzgen Nicole & Schnabel Reinhold, 2006. "Reforming Social Welfare in Germany: An Applied General Equilibrium Analysis," German Economic Review, De Gruyter, vol. 7(4), pages 363-388, December.
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    Citations

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    Cited by:

    1. Boeters, Stefan, 2011. "Optimal tax progressivity in unionised labour markets: What are the driving forces?," Economic Modelling, Elsevier, vol. 28(5), pages 2282-2295, September.
    2. repec:zbw:rwirep:0015 is not listed on IDEAS
    3. Riccardo Magnani & Jean Mercenier, 2007. "On linking microsimulation and applied GE by exact aggregation of heterogeneous discrete-choice making agents," THEMA Working Papers 2007-06, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    4. Sebastian Rausch & Thomas Rutherford, 2010. "Computation of Equilibria in OLG Models with Many Heterogeneous Households," Computational Economics, Springer;Society for Computational Economics, vol. 36(2), pages 171-189, August.
    5. Franz, Wolfgang & Guertzgen, Nicole & Schubert, Stefanie & Clauss, Markus, 2007. "Reformen im Niedriglohnsektor: Eine integrierte CGE-Mikrosimulationsstudie der Arbeitsangebots- und Beschäftigungseffekte," ZEW Discussion Papers 07-085, ZEW - Leibniz Centre for European Economic Research.
    6. Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung (ed.), 2007. "Das Erreichte nicht verspielen. Jahresgutachten 2007/08 [The gains must not be squandered. Annual Report 2007/08]," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 200708, February.
    7. Andreas PEICHL, 2008. "The Benefits of Linking CGE and Microsimulation Models - Evidence from a Flat Tax analysis," EcoMod2008 23800106, EcoMod.
    8. Giulia COLOMBO, 2008. "The Effects of DR-CAFTA in Nicaragua: A CGE-Microsimulation Model for Poverty and Inequality Analysis," EcoMod2008 23800025, EcoMod.
    9. Sebastian Rausch & Thomas F. Rutherford, 2007. "Computation of Equilibria in OLG Models with Many Heterogeneous Households," Ruhr Economic Papers 0015, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    10. Altamirano-Cabrera, J.C. & Bicchetti, D. & Drouet, L. & Thalmann, P. & Vielle, M., 2008. "A global carbon tax to compensate damage and adaptation costs or climate change compensation through a global carbon tax," Conference papers 331782, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Zhang, Xiao-Guang, 2016. "Solving a partial equilibrium model in a CGE framework: the case of a BMS model," Conference papers 332742, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Colombo, Giulia, 2008. "Linking CGE and Microsimulation Models: A Comparison of Different Approaches," ZEW Discussion Papers 08-054, ZEW - Leibniz Centre for European Economic Research.
    13. Xiao-guang Zhang, 2017. "Solving a Partial Equilibrium Model in a CGE Framework: The Case of a Behavioural Microsimulation Model," International Journal of Microsimulation, International Microsimulation Association, vol. 10(3), pages 27-58.

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    More about this item

    Keywords

    applied general equilibrium; discrete working time choice; labour market; wage bargaining; labour market reform; logit model;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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