The results produced with the SISU model are used, for example, in estimating tax revenue and social security expenditure, examining the financial position of citizens and households, and studying income differentials and incentive effects.
Features of the SISU microsimulation model
The SISU model is a static microsimulation model. A static model does not take into consideration any possible behavioural effects due to legal reforms (e.g. labour supply) or long-term dynamics. A static simulation model is thus suitable for assessing the immediate effects of different policy alternatives.
Simulated calculations and dataset simulation
The model can be used for both dataset simulation and simulated calculation. Simulated calculations can be used to simulate certain types of persons or households generated by the user by calculating taxes, benefits and disposable income for them. With simulated calculations, the operation of the income transfer and taxation systems can be described easily and fast, for example, by simulating a person's net income after a certain legislative amendment.
However, the results of simulated calculations cannot be generalised to a larger part of the population or the whole population. For this purpose, dataset simulation is used, where calculations are made on individual-level sample data representing the whole population. It can be used to calculate the effects of legislative amendments or measures made to the taxation and income transfer system on income distribution and on the financial position of different population groups and the entire public finance.
