Linking macroeconomic and micro-simulation models Sample Clauses

Linking macroeconomic and micro-simulation models. Micro-simulation models may include a very large number of household types, even considering all households from a sample survey as separate household types. These models can vary widely in sophistication and granularity, ranging from simple accounting/arithmetic methods to approaches that include behavioral responses of households to changes in labour markets and product prices (i.e. changes in savings behavior). The micro-simulation and the macroeconomic models can operate in a sequential (top-down) form or in an iterative format (top-down/bottom-up), in which there is a feedback loop between the models,[30] as depicted in Figure 4.
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