What is Microsimulation

Microsimulation is a technique used to model complex real life events by simulating the actions and/or impact of policy change on the individual micro unit (Harding, 2007). Although the method was firstly suggested in 1950s (Orcutt, 1957), the development of microsimulation models only started to boom in 1990s thanks to the increasing availability of datasets and the growing computing powers. Microsimulation models are usually categories into "static" or "dynamic". Static models, e.g. EUROMOD (Mantovani et al., 2007), are often arithmetic models that evaluate the immediate distributional impact upon individuals/households of possible policy changes. Dynamic models, e.g. DESTINIE, PENSIM, SESIM (Bardaji et al., 2003, Curry, 1996, Flood, 2007), extend the static model by allowing the individuals to change their characteristics because of endogenous factors within the model (O'Donoghue, 2001). Although behavioural response could be implemented in static models, e.g. the labour supply response in Buddelmeyer et al. (2006), it is more commonly used in dynamic models.

This page is based on Li, Jinjing, & O'Donoghue, Cathal. (2013). A survey of dynamic microsimulation models: uses, model structure and methodology. International Journal of Microsimulation, 6(2)

List of Dynamic Microsimulation Modelling Tools

List of Known Dynamic Microsimulation Models

The following table is extracted from Li & O'Donoghue (2013)

Model Country Uses
ANAC Italy Examines the effect of demographic changes on the Italian saving rate and the reform of the pension system
APPSIM Australia Designed to provide answers regarding the future distributional impact of policy change and other issues associated with policy responses to population ageing
BRALAMMO Brazil Models the Brazilian labour market for pension welfare analysis
CAPP_DYN Italy Analyses the long term redistributive effects of social policies
CBOLT USA Analyses potential reforms to federal entitlement programmes and quantifies the US nation's long-term fiscal challenges
CORSIM USA Models changes occurring within kinship networks, wealth accumulation, patterns of intergenerational mobility, the progressivity and the life course of the current social security system, as well as potential reforms, household wealth accumulation, health status, interstate migration, time and income allocation, and international collaborations
DEMOGEN Canada Models distributional and financial impact of proposals to include homemakers in the Canadian pension plan
DESTINIE I/II France Models public pensions and intergenerational transfers
DYNACAN Canada Models the Canada Pension Plan and its impact on the Canadian population
Dynamic Model Ireland Models inter-temporal issues relating to the degree of redistribution within the tax-benefit system
DYNAMIC TUSCAN Italy Simulates the demographic, social and economic characteristics of the Tuscan population
DYNAMITE Italy Models microeconomic issues and the impact of macroeconomic/institutional changes on the distribution of income
DYNAMOD I & II Australia Models life course policies such as superannuation, age, pensions and education, long-term issues within the labour market, health, aged care and housing policy, future characteristics of the population and the projected impact of policy changes
DYNASIM I & II USA Forecasts the population up to 2030 by employing different assumptions regarding demographic and economic scenarios, and analyses the cost of teenage childbearing to the public sector under alternative policy scenarios, also includes a link to a macro model
DYNASIM III USA Designed to analyse the long-term distributional consequences of retirement and ageing issues
FAMSIM Austria Models the demographic behaviour of young women
FEM USA A demographic and economic simulation model designed to predict the future costs and health status of the elderly and to explore what current trends or future shifts might imply for policy, developed by RAND
GAMEO France Analyses and assesses the consequences of various higher education policies
HARDING Australia Analysis of lifetime tax-transfer analysis, for analysis of policy concerning the Higher Education Contribution Scheme and redistributive impact of government health outlays over the lifetime of an individual
HouseMod Australia Simulates the impacts of different policy options at the small area level in Australia
IFSIM Sweden Studies intergenerational transfers and the interdependence between demography and the economy
IFS Model UK Studies pensioner poverty under a variety of alternative tax and benefit policies
INAHSIM Japan Simulates demographic and social evolution, able to simulate kinship relationships in detail
INFORM UK Developed for forecasting of benefit caseloads and combinations of receipt, designed to incorporate significant benefit reforms planned over the coming years, based entirely on administrative data
Italian Cohort Italy Analyses lifetime income distribution issues
Japanese Cohort Japan Looks at the impact on household savings of changes in demographic structure
LABORsim Italy Simulates the evolution of the labour force over future decades in Italy
LIAM Ireland Evaluates potential reforms to the Irish pensions system in terms of changes to life-cycle incomes
LIFEMOD UK Models the lifetime impact of a welfare state
LifePaths Canada Models health care treatments, student loans, time-use, public pensions and generational accounts
Long Term Care Model UK Models long term care reform options
Melbourne Cohort Australia Analyses income inequality in a lifetime context
MICROHUS Sweden Models dynamic effects of changes to the tax-benefit system on the income distribution and economic-demographic effects of immigration
MICSIM Germany Analyses German pension and tax reform
MiMESIS Sweden Evaluates Swedish Pension Reform
MIDAS Multi Analyses pension system and social security adequacy
MIDAS New Zealand Models wealth accumulation and distribution
MIND Italy Simulates the economic impact resulting from alternative values of the income growth rate and real interest rate
MINT USA Forecasts the distribution of income for the 1931-1960 birth cohorts in retirement, MINT5 extends to the 1926-2018 birth cohorts
MOSART 1/2/3 Norway Models the future cost of pensions, undertakes micro level projections of population, education, labour supply and public pensions, incorporates overlapping-generations, models within a dynamic microsimulation framework
NEDYMAS Netherlands Models intergenerational equity and pension reform, the redistributive impact of social security schemes in a lifetime framework
PENMOD Japan Public pension system analysis
PENSIM UK Models the treatment of pensioners by the social security system across the income distribution
PENSIM2 UK Estimates the future distribution of pensioner incomes to analyse the distributional effects of proposed changes to pension policy
PENSIM USA Analyses lifetime coverage and adequacy issues related to employer-sponsored pension plans in the USA.
Pensions Model Belgium Analyses and forecasts the medium term impact of a change to pension regulations
POHEM Canada A longitudinal microsimulation model of health and disease, it is used to compare competing health intervention alternatives within a framework that captures the effects of disease interactions
POLISIM USA Demographic-economic and social security projection for US social security administration
PRISM USA Evaluates public and private pensions
PSG USA Analyses the lifetime implications of social security policies for a large sample of people born in the same year
SADNAP Netherlands Evaluates the financial and economic implications of the problem of ageing
SAGE UK Dynamic demographic/tax model for the UK
SESIM Sweden Models budget and distributional impact of inter-temporal policy issues such as student grants, labour supply, savings decisions and pensions
SimBritain UK Simulates urban and regional populations within the UK
SMILE Ireland Population projections with spatial details for Ireland
Sfb3 Germany Analyses pension reforms, the effect of shortening worker hours, distributional effects of education transfers
SIPEMM Slovenia A Slovenia Dynamic Microsimulation Model with the focus on pension system simulation
SustainCity Multi A dynamic model with a focus on land use simulations
SVERIGE Sweden Models human eco-dynamics (the impact of human cultural and economic systems on the environment)
Swedish Cohort Sweden Models the replacement of social insurance by personal savings accounts and the distribution of lifetime marginal effective tax rates
Tdymm Italy Analyses the Italian labour market and pension system, with a focus on pension adequacy and related distributional effects
XEcon Canada A model intended for theoretical exploration rather than practical empirical application (developed for the eXperimental Economy)
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