The ZEW combined microsimulation-CGE model: innovative tool for applied policy analysis
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.
|Date of creation:||2009|
|Contact details of provider:|| Postal: L 7,1; D - 68161 Mannheim|
Web page: http://www.zew.de/
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