Abstract

This paper focuses on the use of information technology (IT) in diverse microsimulation studies and presents state-of-the-art solutions in the traditional application field of personal income tax simulation. The aim of the paper is to promote solutions, which can improve the efficiency and quality of microsimulation model implementation, assess their applicability and help to shift attention from microsimulation model implementation and data analysis towards experiment design and model use. First, the authors shortly discuss the relevant characteristics of the microsimulation application field and the managerial decision-making problem. After examination of the salient problems, advanced IT solutions, such as meta-database and service-oriented architecture are presented. The authors show how selected technologies can be applied to support both data- and behavior-driven and even agent-based personal income tax microsimulation model development. Finally, examples are presented and references made to the Hungarian Income Tax Simulator (HITS) models and their results. The paper concludes with a summary of the IT assessment and application-related author remarks dedicated to an Indonesian Income Tax Microsimulation Model.

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