Modelling the dynamic effects of transfer policy: the LINDA policy analysis tool

Paolo Lucchino () and Dr Justin van de Ven ()

No 405, 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 that generates individualspeci?c data over a range of demographic and economic characteristics at annual intervals overthe life-course. The model is speci?cally designed to analyse the distributional implications of policy alternatives in terms of their bearing on income and consumption measured over alternative time periods, from one year up to the entire life-course. This focus on economic characteristics measured over appreciable periods of life motivates endogenous simulation of savings and labour supply decisions, taking explicit account of uncertainty regarding the evolving decision environment. Re?ecting the demands of policy makers, and in contrast to the majority of the associated literature, the model described here is designed to project from data observed for a population cross-section.

Keywords: Dynamic Programming; Savings; Labor Supply (search for similar items in EconPapers)
JEL-codes: C51 C61 C63 H31 (search for similar items in EconPapers)
Date: 2013-03
New Economics Papers: this item is included in nep-cmp
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Citations: View citations in EconPapers (2)

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