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Suggested Citation:"Input Data." National Research Council. 1991. Improving Information for Social Policy Decisions -- The Uses of Microsimulation Modeling: Volume II, Technical Papers. Washington, DC: The National Academies Press. doi: 10.17226/1853.
Page 97

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ALTERNATIVE MODEL DESIGNS: PROGRAM PARTICIPATION FUNCTIONS AND THE ALLOCATION OF ANNUAL TO 97 MONTHLY VALUES IN TRIM2, MATH, AND HITSM wage and salary jobs, nonfarm self-employment, and farm self-employment) for each person and then allocates that sum to each month in proportion to the simulated number of weeks worked in that month. MATH The ALLOY routine sums the earnings variables, then computes an average weekly amount (annual earnings divided by total number of weeks worked), and then multiplies this amount by 4.333 to obtain average earnings per month. This monthly figure is allocated to each simulated month of employment. Income from nonfarm self-employment is constrained to be greater than or equal to zero in order to mimic the food stamp program regulations regarding losses. (Net rental income is similarly constrained—see discussion of unearned income below.) HITSM This model first determines the average hourly wage rate for each person. Then during each week in which an individual is simulated to work, weekly earnings are calculated as the product of the wage rate times the number of hours normally worked per week during the year. Weekly earnings are summed to produce monthly earnings, where each month is assumed to include 4.33 weeks. Comment The procedures for allocating earned income are essentially the same in all three models, with the exception that MATH does not allow for part-month employment. Determination of Monthly Unearne d Income Input Data The March CPS public-use files provide, for each person 15 years of age and older at the time of the March supplement interview, the following items pertaining to unearned income during the preceding calendar year: receipt of income from private, federal, military, and state and local government pensions; total annual pension income; receipt of income from social security and railroad retirement; total annual social security/railroad retirement income; receipt of income from interest; total annual interest income;

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Improving Information for Social Policy Decisions -- The Uses of Microsimulation Modeling: Volume II, Technical Papers Get This Book
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This volume, second in the series, provides essential background material for policy analysts, researchers, statisticians, and others interested in the application of microsimulation techniques to develop estimates of the costs and population impacts of proposed changes in government policies ranging from welfare to retirement income to health care to taxes.

The material spans data inputs to models, design and computer implementation of models, validation of model outputs, and model documentation.

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