Problems and Prospects for Dynamic Microsimulation: A review and lessons for APPSIM

This paper has been prepared as the first in a series of papers associated with the development of the Australian Population and Policy Simulation Model (APPSIM). The APPSIM dynamic population microsimulation model is being developed as part of an Australian Research Council (ARC) Linkage grant (LP0562493), and will be used by Commonwealth Government policy makers and other analysts to assess the social and fiscal policy implications of Australia's ageing population. This paper reviews progress nationally and internationally on the construction of dynamic population microsimulation models and considers the lessons that might be taken from that earlier experience for the construction of the APPSIM model.