Policy Simulation Model
 |
The Policy Simulation Model (PSM) is a static microsimulation model which encapsulates the tax and benefits system, and population, of Great Britain. It is based on survey data from the FRS, which is uprated to simulate the current year, together with a few years into the future through a process of static uprating.
The model is built using SAS and is owned by the GB Department for Work and Pensions. It is used for poverty and scenario analysis associated with the development of new policies, including Universal Credit. It produces outputs including the financial (and work-incentive) impacts on a representative sample of the GB population from hypothetical policy changes to the tax and benefits system.
See also
- Pensim2, another model with the same ownership