Pensim2 is a dynamic
microsimulation
Microsimulation (from microanalytic simulation or microscopic simulation) is a category of computerized analytical tools that perform highly detailed analysis of activities such as highway traffic flowing through an intersection, financial transact ...
model to simulate the
income of
pensioners, owned by the
British Department for Work and Pensions.
Pensim2 is the second version of Pensim which was developed by
Institute for Fiscal Studies in the 1990s. The
time horizon of the model is 100 years, by which time today's school leavers will retire. Pensim2 uses a lot of external alignment figures.
Overview
Pensim2 uses aggregate and micro-level data from different data sources, e.g.
BHPS,
LLMDB and the
Family Resources Survey. It simulate a very wide range of economic processes: earnings,
housing,
savings,
pensions
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 ...
,
taxes. It has the useful feature of allowing the user to specify certain parameters (for example the rate of return to the stock market).
See also
*
Policy Simulation Model, another model with the same ownership
References
External links
DWP homepage
Department for Work and Pensions
Econometric models
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