The Dynamic Microsimulation Model of the Czech Republic is a

dynamic microsimulation pension model A dynamic microsimulation pension model is a type of a pension model projecting a pension system by means of a microsimulation and generating the complete history of each individual in a data set. The results of such model offer both the aggregat ...

simulating the pension system of the

Czech Republic The Czech Republic, or simply Czechia, is a landlocked country in Central Europe. Historically known as Bohemia, it is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the southeast. Th ...

, owned by the

Ministry of Labour and Social Affairs Ministry may refer to: Government * Ministry (collective executive), the complete body of government ministers under the leadership of a prime minister * Ministry (government department), a department of a government Religion * Christian m ...

. The model was developed in 2011 by

Deloitte Deloitte Touche Tohmatsu Limited (), commonly referred to as Deloitte, is an international professional services network headquartered in London, England. Deloitte is the largest professional services network by revenue and number of professio ...

. The project was funded with support from the European Commission's Progress programme, for projects related to the development of administrative datasets and models for labour market and pension analysis.

Details

The model was implemented by Deloitte (Actuarial & Insurance Solutions, Central Europe) using a software system called Prophet developed by

SunGard SunGard was an American multinational company based in Wayne, Pennsylvania, which provided software and services to education, financial services, and public sector organizations. It was formed in 1983, as a spin-off of the computer services div ...

. A special library containing the entire code was prepared by Deloitte specifically for this purpose. Deloitte had previously developed and implemented similar pension models in other countries, such as Hungary.{{cite book, author1=Gál, R. I. , author2=Horváth, A. , author3=Orbán, G. , author4=& Dekkers, G. , title=PENMICRO: Monitoring pension developments through micro socioeconomic instruments based on individual data sources: feasibility study, year=2009, publisher=TARKI Social Research Institute, pages=67, url=http://ec.europa.eu/social/main.jsp?langId=en&catId=89&newsId=490&furtherNews=yes The Dynamic Microsimulation Model allowed the Ministry of Labour and Social Affairs to use individual data, along with aggregate results, to explore the impact on

distribution Distribution may refer to: Mathematics *Distribution (mathematics), generalized functions used to formulate solutions of partial differential equations *Probability distribution, the probability of a particular value or value range of a varia ...

pension A pension (, from Latin ''pensiō'', "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments ...

s, poverty of pensioners, impact of the changes of the pension formula on distributional properties of the pension system and so on. The model is parametrised to the existing pension system. However, all the major parameters of the current system are stored in the system of tables and can be changed in order to investigate the impact of the parameter change on the pension system. The model also includes the functionality of a funded pillar and enables simulation of the impact of introduction of the funded pillar.

References

Society of the Czech Republic Welfare in the Czech Republic Economic forecasting Deloitte Microsimulation

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See also

References