Statistics Finland develops microsimulation

Statistics Finland is currently developing a new microsimulation model for income transfers and taxation, which can be utilised more widely than before in research, for instance.

The new version of the model will be introduced in 2013. The model distributed by Statistics Finland will be available to government Ministries and their agencies, as well as to universities and research institutes for their scientific studies and statistical analyses on social conditions.

Microsimulation models have been used for quite some time now in Finland in the drafting of legislation on social security benefits and income taxation. Microsimulation models help in calculating from unit-level data on a representative sample the overall effects of legislative amendments on both different types of households and on the whole population. The models are used to estimate tax revenues in the public sector, examine the financial positions of individual persons and households, and to study income differentials and incentive effects.

New user interface widens application potential

A pilot version of the new model is ready and is being tested together with the present users of microsimulation models at Ministries and research institutes.

An easy-to-use user interface will be built during this year, which will widen the application potential of the model. In addition, the calculation accuracy of the microsimulation model will be substantially improved with a considerably enlarged set of basic data that represents the population better than before. The model will be used via remote access in future.

The Ministry of Finance launched the project for the designing of the microsimulation model more than two years ago jointly with the Social Insurance Institution of Finland, the Ministry of Social Affairs and Health, the National Institute for Health and Welfare, and the Government Institute for Economic Research. The construction, maintenance and development of the model are centralised to Statistics Finland. Statistics Finland has been building the model in close co-operation with the Research Department of the Social Insurance Institution of Finland in particular.

Further information: Olli Kannas, Head of Research, tel. +358 9 1734 3766,

Statistics Finland's services for researchers

Last updated 30.5.2012