What is Social Science Microsimulation?

Abstract

This article introduces microsimulation by presenting its main underlying ideas as well as its main strengths and drawbacks. Microsimulation is currently experiencing a boom, which is driven by three main forces. The first is the increased demand of policy makers for detailed projections and models able to assess distributional and long-term sustainability issues of social security systems. The second is the emergence of new research paradigms with an increased emphasis on individuals within their context, studied from a longitudinal, multilevel perspective. The third concerns technological advances, providing not only the necessary computer power but also the programming tools for model development, accessible to scientists without specialized programming skills. Although static microsimulation models are established tools for policy analysis, dynamic microsimulation has yet to find its way into the methodological toolbox of mainstream social scientists—but the prospects are promising.