CHIPS Microsimulation model: A tool to evaluate effects on inequality and poverty

Microsimulation models are tools that simulate the effect of a policy or a reform on a representative sample of individual agents (households, consumers, taxpayers, etc.). They allow computing both aggregate and distributional effects of the policy or reforms, considering the heterogeneity among individuals. As a consequence, they are a powerful tool for the development of decision-support models in order to simulate and evaluate the impact of public policies. This tool was developed in the context of the AXIS-project CHIPS (www.chips-project.org).