The World Bank

PSE - Paris-Jourdan Sciences Economiques
(Joint research unit CNRS-EHESS-ENPC-ENS), Paris

PSE - Paris-Jourdan Sciences Economiques
(Joint research unit CNRS-EHESS-ENPC-ENS), Paris

Universitat de les Illes Balears, Palma de Mallorca

During the last twenty years, microsimulation models have been increasingly applied in qualitative and quantitative analysis of public policies. This paper provides a discussion on microsimulation techniques and their theoretical background as a tool for the analysis of public policies with particular attention to redistribution and social policies. Basic principles in using microsimulation models and interpreting their results are analyzed, with particular emphasis on tax incidence, redistribution and poverty analysis. Social welfare analysis permitted by microsimulation techniques is also discussed. Finally, the paper points to limits of present approaches and directions for future research.

Keywords: Microsimulation, evaluation of public policies, optimal taxation, poverty and inequality.

JEL classification: C81, D31, H21, H23, H31

Au cours des vingt dernières années, l'utilisation des modèles de microsimulation des politiques de redistribution n'a cessé de croître. Cet article offre un rapide survol de ces modèles, l'accent étant mis sur les développements récents dans ce domaine de l'économie appliquée et sur quelques directions de recherche future.

Creation : January 2005