Template-type: ReDIF-Paper 1.0
Author-Name: Li, Jinjing
Author-Email: li@merit.unu.edu
Author-Workplace-Name: UNU-MERIT/MGSoG, Maastricht University
Author-Name: O'Donoghue, Cathal
Author-Workplace-Name: Teagasc, NUI, Ireland
Title: Evaluating binary alignment methods in microsimulation models
Abstract: Alignment is a widely adopted technique in the field of microsimulation 
	 for social and economic policy research. However, limited research has 
	 been devoted to the understanding of their simulation properties. This 
	 paper discusses and evaluates six common alignment algorithms used in 
	 the dynamic microsimulation through a set of theoretical and statistical 
	 criteria proposed in the earlier literature (e.g. Morrison 2006; 
	 O'Donoghue 2010). This paper presents and compares the alignment 
	 processes, probability transformations, and the statistical properties 
	 of alignment outputs in transparent and controlled setups with both 
	 synthetic and real life dataset (LII). The result suggests that there is 
	 no single best method for all simulation scenarios. Instead, the choice 
	 of alignment method might need to be adapted to the assumptions and 
	 requirements in a specific project.
Classification-JEL: C15, C18, C50
Keywords: alignment, microsimulation, algorithm evaluation
Series: UNU-MERIT Working Papers
Creation-Date: 2012
Number: 003
File-URL: http://www.merit.unu.edu/publications/wppdf/2012/wp2012-003.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2012003