Microsimulation and policy analysis

Publication type

ISER Working Paper Series

Series Number

2014-23

Series

ISER Working Paper Series

Authors

Publication date

June 9, 2014

Abstract:

We provide an overview of microsimulation approaches to assess the effects of policy on the income distribution. We focus mainly on the role of tax-benefit policies and review the concept of microsimulation and how it contributes to the analysis of the income distribution in general and policy evaluation in particular. We consider the main challenges and limitations and discuss directions for future developments.

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