Pensim2 is a dynamic microsimulation

model A model is an informative representation of an object, person or system. The term originally denoted the plans of a building in late 16th-century English, and derived via French and Italian ultimately from Latin ''modulus'', a measure. Models c ...

to simulate the

income Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. Fo ...

pensioner A pensioner is a person who receives a pension, most commonly because of retirement from the workforce. This is a term typically used in the United Kingdom (along with OAP, initialism of old-age pensioner), Ireland and Australia where someone of p ...

s, owned by the

British British may refer to: Peoples, culture, and language * British people, nationals or natives of the United Kingdom, British Overseas Territories, and Crown Dependencies. ** Britishness, the British identity and common culture * British English, ...

Department for Work and Pensions , type = Department , seal = , logo = Department for Work and Pensions logo.svg , logo_width = 166px , formed = , preceding1 = , jurisdiction = Government of the United Kingdom , headquarters = Caxton House7th Floor6–12 Tothill Stree ...

. Pensim2 is the second version of Pensim which was developed by

Institute for Fiscal Studies The Institute for Fiscal Studies (IFS) is an economic research institute based in London, United Kingdom, which specialises in UK taxation and public policy. It produces both academic and policy-related findings. The institute's aim is to "ad ...

in the 1990s. The

time horizon Time is the continued sequence of existence and events that occurs in an apparently irreversible succession from the past, through the present, into the future. It is a component quantity of various measurements used to sequence events, to co ...

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 The Lifelong Labour Market Database (LLMDB2) is a panel data set, owned by the Department for Work and Pensions in Britain. LLMDB2 holds a 1% sample from the new ''National Insurance Recording System (NIRS2)'' and is a fully representative sample of ...

and the Family Resources Survey. It simulate a very wide range of economic processes: earnings,

housing Housing, or more generally, living spaces, refers to the construction and assigned usage of houses or buildings individually or collectively, for the purpose of shelter. Housing ensures that members of society have a place to live, whether i ...

savings Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word , which is from an ...

, pensions,

taxes A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, o ...

. It has the useful feature of allowing the user to specify certain parameters (for example the rate of return to the stock market).

References

External links

DWP homepage
Department for Work and Pensions Econometric models {{econometrics-stub

Overview

See also

References

External links