Abstract
The Simulated Model of the Irish Local Economy (SMILE) is a spatial microsimulation model designed to analyse the relationships between regions and to project the spatial implications of public policy and economic development on welfare in rural areas. The development of this model was motivated by the lack of spatially referenced socio-economic and demographic microdata to facilitate analyses of welfare in Ireland. This chapter provides an overview of procedures carried out in both the creation and application of SMILE. In doing so, a new data synthesis procedure to improve computational efficiency is presented, which we call quota sampling. Synthesis results are validated according to internal totals, with a calibration procedure implemented to align welfare distributions to known external totals. This model is then applied to analyse the spatial incidence of disposable income and welfare redistribution in Ireland. It is found that Irish tax-benefit policy is effective in redistributing income from the greater Dublin area and south of Ireland to the rest of the country.
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Notes
- 1.
For example, with a remaining quota count of n individuals of class k to be filled, the search space is refined to exclude households containing n  +  1 individuals of class k.
- 2.
Market income is income before the deduction of income taxes and addition of benefits.
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Farrell, N., Morrissey, K., O’Donoghue, C. (2012). Creating a Spatial Microsimulation Model of the Irish Local Economy. In: Tanton, R., Edwards, K. (eds) Spatial Microsimulation: A Reference Guide for Users. Understanding Population Trends and Processes, vol 6. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-4623-7_7
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