microsimulation

Microsimulation is a computerized technique used to model and analyze how individual entities—like people, households, or firms—interact within a system over time. By simulating each entity’s behaviors and decisions based on set rules and data, it helps researchers understand complex outcomes, such as policy impacts or economic trends, at a detailed level. This method allows for testing different scenarios and predicting how small changes might influence overall results, providing valuable insights into systems that are too complicated to analyze just by looking at average or aggregate data.