Simulating Household Savings and Labour Supply: an Application of Dynamic Programming

James Sefton and Justin van de Ven

National Institute Economic Review, 2004, vol. 188, issue 1, 56-72

Abstract: This paper describes a fully behavioural microsimulation model that has recently been developed at the National Institute for considering responses to changes in pension policy of household savings and labour supply. The model generates household decisions regarding labour/leisure, and consumption/savings by solving a dynamic programming problem over the simulated lifetime. This analytical framework incorporates a degree of complexity that is usually omitted from econometric analyses that are common in the literature.

Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://ner.sagepub.com/content/188/1/56.abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:niesru:v:188:y:2004:i:1:p:56-72

Access Statistics for this article

More articles in National Institute Economic Review from National Institute of Economic and Social Research Contact information at EDIRC.
Bibliographic data for series maintained by SAGE Publications ().