micro simulation

Micro-simulation is a modeling technique that uses detailed individual data to analyze the impact of policies or changes on specific populations. It simulates the behavior of individual units—such as people or households—by applying rules and probability-based assumptions. This approach allows researchers and policymakers to forecast how interventions, like tax reforms or healthcare programs, will affect outcomes at the individual level, ultimately providing insights into broader societal effects. By capturing nuances and variations among individuals, micro-simulation offers a precise way to evaluate potential consequences before implementing real-world changes.