An Introduction to Microsimulation Tax-Benefit Models

(Finally) Introducing Our Model

Now we can go on to experiment with our model. We’ll do this in two steps. Firstly, we’ll use it to draw some budget constraints for a example person. This allows us to study in a simple way how taxes and benefits interact, and to introduce a few more concepts that can help us think about policy.

Then we’ll move on to running our model on a complete FRS dataset.