Chapter 3 SESIM: A Swedish Micro-Simulation Model

In 1997, SESIM was developed as a tool at the Swedish ministry of finance to evaluate the Swedish system to finance higher education. Part of that work was documented in Ericson and Hussénius (2000) . We refer to this as version I of SESIM. Focus then shifted from education to pensions. SESIM was used to evaluate the financial sustainability of the new Swedish pension system. This new application implied that SESIM was developed into a general micro-simulation model (MSM) that can be used for a broad set of issues. We refer to this as the second version of SESIM and the documentation is presented in Flood (2003) . The present version, SESIM III, maintains the focus on pensions but extends the analyses to include health issues, regional mobility, and wealth.