Microsimulation

What are the likely employment effects of the new tax credit policies? How might road user charges alter patterns of transport use? Can a change in the provision of pensions affect the decision to retire? How much do policy reforms cost? To what extent are initial costs reduced through policy-induced changes in behaviour? These are the sorts of questions that microsimulation methods are designed to address. This course reviews the main techniques of microsimulation, using examples from the government’s own report, Adding it Up to illustrate methods and possible developments.