Microsimulation Modelling of Taxation and the Labour Market: The Melbourne Institute Tax and Transfer Simulation

Four economists from Melbourne University explain the large-scale behavioral microsimulation model designed to predict how policy changes to any component of the Australian income tax and transfer payment system might effect individuals and households. They explain and discuss the rationale for the basic modelling approached it uses, along with details of econometric methods for estimating behavioral relationships. They also describe the main features, installation, and use of the Simulator. They do not consider any particular policy simulations. Annotation c. Book News, Inc., Portland, OR (booknews.com)