On linking microsimulation and computable general equilibrium models using exact aggregation of heterogeneous discrete-choice making agents

Riccardo Magnani and Jean Mercenier ()

Post-Print from HAL

Abstract: Our paper contributes by bridging the gap between the (partial equilibrium) microsimulation and the computable general equilibrium (CGE) approaches, by making use of exact aggregation results from the discrete choice literature: heterogeneous individuals choosing within a set of discrete alternatives may be aggregated into a representative agent with (possibly multiple-level) constant elasticity-of-substitution/transformation preferences/technologies. These results therefore provide a natural link between the two policy evaluation approaches. We illustrate the usefulness of these results by evaluating potential effects of population ageing on the dynamics of income distribution and inequalities, using a simple overlapping generations model where individuals make leisure/work decisions, and choose a profession among a discrete set of alternatives.

Keywords: Microsimulation; CGE models; Exact aggregation; Discrete choice; Nested multinomial logit; Population ageing; Income inequality (search for similar items in EconPapers)
Date: 2009
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00627736
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Published in Economic Modelling, 2009, 26 (3), pp.560-570

Downloads: (external link)
https://shs.hal.science/halshs-00627736/document (application/pdf)

Related works:
Journal Article: On linking microsimulation and computable general equilibrium models using exact aggregation of heterogeneous discrete-choice making agents (2009)
Working Paper: On Linking Microsimulation and Computable General Equilibrium Models Using Exact Aggregation of Heterogeneous Discrete-choice Making Agents (2008)
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:hal:journl:halshs-00627736

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().