A Review of Spatial Microsimulation Methods

This paper outlines a framework for spatial microsimulation models, gives some reasons why someone may want to use a spatial microsimulation model, describes the development of spatial microsimulation over the last 30 years, summarises the different methods currently used for spatial microsimulation, and outlines how the models can be validated. In reviewing the reasons and methods for spatial microsimulation, we conclude that spatial microsimulation provides an alternative to other small area estimation methods, providing flexibility by allowing cross-tabulations to be built, and an ability to link to other models, and derive projections. Spatial microsimulation models also allow demographic changes, like births and deaths, to be included in a dynamic microsimulation model. This also allows ‘what if’ scenarios to be modelled, for example, what would happen if the birth rate increased over time. Validation of the spatial microsimulation models shows that they are now at the stage where they can provide reliable result