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VOLUME 48 | NUMBER 2.2 | APRIL 2013

Using Microsimulation Models to Inform U.S. Health Policy Making

Microsimulation models are an important tool for estimating the potential behavioral and economic effects of public policies on decision making units, including individuals and households, employers, suppliers of health insurance and health care services, and government.  Among the broader set of models available to researchers and analysts to inform policy decisions, microsimulation models (MSMs) are distinguished from others by their capacity to analyze the policy impact at the level at which it is intended and to incorporate changing behavioral responses and institutional attributes over the time period being assessed (Chollet 1990; Citro and Hanushek 1991).

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