We develop a simulation model of household behaviour in which both the consumption/saving and labour/leisure choices are endogenous. This model is used to explore the effects of the UK and Danish state tax and benefit systems on the labour supply of workers aged 50 or over. We find that, in...

This paper explores the effect of aggregate mortality risk on thepricing of annuities. It uses a two-period model; in the second period people face a constant but intiially unknown risk of death. Old people can either carry the aggregat emortlaity risk for themselves or buy annuities which are...

The last 60 years have seen Australia and the United Kingdom diverge, both socially and economically. This paper considers how the widening social gap between the two countries is reflected by their respective redistributive systems. The analysis is based upon two microsimulation procedures —...

Although many countries are now using skilled migration to offset declining fertility and increased longevity, there is thin empirical evidence concerning the effects of alternative approaches to managing the skilled migrant intake. This study focusses on the effects on migrant labour market...

This paper describes a structural dynamic microsimulation model that generates individual-specific data over a range of demographic and economic characteristics at annual intervals over the life-course. The model is specifically designed to analyse the distributional implications of policy...

A dynamic microsimulation model of cohort earnings based on the Australian population aged between 20 and 55 years is described. A highly parsimonious modular structure is adopted to facilitate sensitivity analysis and enable additional characteristics to be added, should they be desired....

Means testing plays an important role in the UK state pension system. We use a dynamic programming model to consider the long-term behavioural effects of a recent policy reform that reduced the marginal tax rates on private income of means tested retirement benefits from 100% to 40%. Our...

This paper explores the pricing of annuities in a structural overlapping generations model in which the mortality rate of people when old is uncertain. A market clearing price for annuities is established below the fair price. At this price the willingness of old people to pay the young to carry...

This study uses a stylised simulation model to consider potential behavioural responses to the reduction in pension taper rates associated with replacing the Minimum Income Guarantee (MIG) with the Pension Credit (PC). A range of long-run responses to the policy change are identified, summarised...

We use a rational agent model of savings and labour supply to considering how consumer responses to a worsening of labour market opportunities could be influenced by the extent of private sector indebtedness. Our simulations indicate that responses to a negative labour market shock depend...