Process / pipelineSimulation / optimization
Deterministic Microsimulation — Rule-based individual-level simulation without random draws
Deterministic Microsimulation applies a fixed set of policy rules or behavioral equations to each individual or household record in a microdata file, computing exact outcomes without any random sampling. It is the standard engine behind tax-benefit calculators and demographic projection models used by governments worldwide.
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Sources
- Orcutt, G. H. (1957). A new type of socio-economic system. Review of Economics and Statistics, 39(2), 116–123. DOI: 10.2307/1928528 ↗
- Bourguignon, F., & Spadaro, A. (2006). Microsimulation as a tool for evaluating redistribution policies. Journal of Economic Inequality, 4(1), 77–106. DOI: 10.1007/s10888-005-9012-6 ↗