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The ZEW combined microsimulation-CGE model: innovative tool for applied policy analysis

Listed author(s):
  • Clauss, Markus
  • Schubert, Stefanie

This contribution describes the linkage of microsimulation models and computable general equilibrium (CGE) models using two already established models called "STSM" and "PACE-L" used by the Centre for European Economic Research. This state of the art research method for applied policy analysis combines the advantages of both model types: On the one hand, microsimulation models allow for detailed labor supply and distributional effects due to policy measures, as individual household data is used. On the other hand, by using a general equilibrium framework, labour market responses, such as wage and labour demand reactions are taken into account.

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File URL: https://www.econstor.eu/bitstream/10419/28605/1/611193329.pdf
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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 09-062.

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Date of creation: 2009
Handle: RePEc:zbw:zewdip:09062
Contact details of provider: Postal:
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Phone: +49/621/1235-01
Fax: +49/621/1235-224
Web page: http://www.zew.de/
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  1. Charles L. Ballard & Don Fullerton & John B. Shoven & John Whalley, 1985. "A General Equilibrium Model for Tax Policy Evaluation," NBER Books, National Bureau of Economic Research, Inc, number ball85-1, Enero.
  2. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
  3. Arntz, Melanie & Boeters, Stefan & Gürtzgen, Nicole, 2005. "Alternative Approaches to Discrete Working Time Choice in an AGE Framework," ZEW Discussion Papers 05-62, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Bohringer, Christoph & Boeters, Stefan & Feil, Michael, 2005. "Taxation and unemployment: an applied general equilibrium approach," Economic Modelling, Elsevier, vol. 22(1), pages 81-108, January.
  5. McFadden, Daniel L., 2000. "Economic Choices," Nobel Prize in Economics documents 2000-6, Nobel Prize Committee.
  6. Sherman Robinson & Andrea Cattaneo & Moataz El-Said, 2001. "Updating and Estimating a Social Accounting Matrix Using Cross Entropy Methods," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 47-64.
  7. Bargain, Olivier & Caliendo, Marco & Haan, Peter & Orsini, Kristian, 2006. "'Making Work Pay' in a Rationed Labour Market," IZA Discussion Papers 2033, Institute for the Study of Labor (IZA).
  8. François Bourguignon & Amedeo Spadaro, 2006. "Microsimulation as a Tool for Evaluating Redistribution Policies," Working Papers 20, ECINEQ, Society for the Study of Economic Inequality.
  9. Davies, James B., 2004. "Microsimulation, CGE and Macro Modelling for Transition and Developing Economies," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  10. Charles L. Ballard & Don Fullerton & John B. Shoven & John Whalley, 1985. "Introduction to "A General Equilibrium Model for Tax Policy Evaluation"," NBER Chapters, in: A General Equilibrium Model for Tax Policy Evaluation, pages 1-5 National Bureau of Economic Research, Inc.
  11. Clauss, Markus & Schnabel, Reinhold, 2008. "Distributional and Behavioural Effects of the German Labour Market Reform," ZEW Discussion Papers 08-006, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  12. Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-1051, September.
  13. 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.
  14. Creedy, John & Duncan, Alan, 2002. " Behavioural Microsimulation with Labour Supply Responses," Journal of Economic Surveys, Wiley Blackwell, vol. 16(1), pages 1-39, February.
  15. Gerhard Wagenhals, 2004. "Tax-benefit microsimulation models for Germany: A Survey," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 235/2004, Department of Economics, University of Hohenheim, Germany.
  16. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, December.
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