A Model of Household Savings and Labour Supply Responses to the Policy Environment

Dr Justin van de Ven ()

No 334, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: This paper describes a structural dynamic microsimulation model of the household that has been developed at the National Institute for exploring behavioural responses to various aspects of the economic environment, particularly in relation to tax and benefits policy. The model is based upon the life-cycle theory of behaviour, which assumes that individuals make their decisions to maximise expected lifetime utility, subject to expectations that are consistent with the prevailing decision making environment. These expectations are also considered to take into account various aspects of uncertainty regarding labour incomes, rates of return, relationship status and longevity. The model is designed to minimise computational time in the context of contemporary personal computing technology, and will run on a Pentium 4 processor with 1GB of RAM.

Date: 2009-06
References: Add references at CitEc
Citations: View citations in EconPapers (4)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:nsr:niesrd:334

Access Statistics for this paper

More papers in National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research 2 Dean Trench Street Smith Square London SW1P 3HE. Contact information at EDIRC.
Bibliographic data for series maintained by Library & Information Manager ().