The Role of Survey Data in Microsimulation Models for Social Policy Analysis

Abstract

Questions about the impact of social policies cannot be answered solely on the basis of official statistics made available in tabular format. The access to microdata allows policy analysts to answer these questions with a larger set of analytical tools, in particular microsimulation models. This paper examines the interface between survey data and microsimulation models. We review different types of microsimulation models (static and dynamic) and their data requirements. We then restrict the attention to survey‐based microdata, and examine issues in survey design, questionnaire content, data quality, and dissemination policy that are important from the perspective of microsimulation.

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