We present the framework of a macro-micro simulation model for the study of the impact of economic policies on income distribution and monetary poverty in Madagascar. Modelling options and choices are discussed for the micro-economic module and for the macro-micro linkages. Econometric...

This is an introduction to the papers in this special issue on policy simulations discussing a variety of simulation models. Simulation modelling has become a powerful tool to analyse hypothetical and actual policy changes. This issue contains analyses based on both macro- and micro-level data....

This paper examines the role of work as an incentive device in income maintenance programs in different informational environments. To that end, we make both the income generating ability and the disutility of labor of individuals unobservable, and compare the resulting benefit schedules with...

In this paper, we argue that welfare participation is more sensitive to economic conditions than previously believed. Why? Prior research focused on short-term economic fluctuations and ignored differences between high- and low-skilled workers. As welfare reform is long-term (i.e., permanent) it...

The re-emergence of long term unemployment and benefit dependency has posed new challenges for traditional welfare and employment assistance regimes. New strategies aimed at ‘activating’ benefit systems, ‘making work pay’ and improving the efficiency of labour market programs are being...

A subject of considerable policy concern is the problem presented by declining fertility rates for social security systems in general and Pay-As-You-Go pension schemes in particular. Solutions proposed range from complete privatisation of the pensions system, through supplementary private...

This paper examines the distributional and efficiency effects of an Earned Income Tax Credit (EITC) program of the kind being strongly advocated for Australia by a number of economists. The paper presents an empirical analysis of the Family Tax Credit proposed by the Australian Labor Party at...

The author of this paper was one of the members of the Reference Group that produced the McClure Report that recommended a simplified income support system as well as improved work incentives, as well as increased economic and social participation requirements on welfare recipients, and enhanced...

This paper introduces the papers based on a series of lectures held by the Centre for Economic Policy Research at the Australian National University in 2001 to commemorate the wide-ranging economic contribution of the late Professor F.H. (“Fred”) Gruen. The theme of the lectures was...