In practical applications of micro simulation models very little is usually known about the properties of the simulated values. This paper argues that we need to apply the same rigorous standards for inference in micro simulation work as in scientific work generally. If not, then micro...

This paper addresses transboundary environmental problems in the context of an optimal tax problem, when part of the labor force is mobile across countries. The policy instruments include both commodity taxation and nonlinear income taxation. We show how the tax policy in a noncooperative...

Micro simulation involves modeling the behavior of individuals and other decision units taking into account the effects of policy parameters such as tax rates, eligibility rules for benefits and subsidies and compensation rates in the social security system. The model is simulated to analyze the...

This paper addresses optimal taxation, when the relationship between consumption and environmental damage is uncertain and treated as a random variable by policy makers. The main purpose is to analyze how additional uncertainty about this relationship affects the optimal unit tax on the...

There is a rising importance of human capital in the total capital stock of an economy. In this paper we discuss the nature of investments in children and sketch out the diverse kinds of inputs to the developmental process across different countries at selected time points. The observable inputs...

Micro-simulation is an approach to analyze the impact of economic and social policy on the distribution of target variables, not just on the means. It easily includes the true policy instruments and handles highly nonlinear relations. Most models currently used in policy analysis are static and...

This paper surveys the last decade of micro-economic research using time-use data. Focusing on the household production model, time-use as an investment activity, and the distribution of extended income, issues of data collection, measurement errors, model specification and estimation as well as...