Microsimulation: A Tool for Tempering Policy Decisions

Mathematica's microsimulation models have been used routinely by policymakers for almost 30 years to provide a sound foundation for decisions that affect the well-being of Americans. These models, which run on personal computers, have enabled Mathematica to provide policymakers with accurate estimates of the impact of hundreds of proposed or actual changes to government programs, such as the Food Stamp Program.

As the largest nutrition program in terms of expenditures, the Food Stamp Program provides base nutrition support to millions of households that have been determined by policymakers to be at risk of inadequate nutrition because of inadequate financial resources. In administering this large program, policymakers must be able to accurately monitor and evaluate the impact of proposed policy changes. Key factors to monitor include program costs, quality, and participation. Our MATH^® microsimulation models let policymakers project these impacts. The simulations can show the impact of changes in program rules (for example, financial eligibility, asset limits, and benefit formulas), as well as changes in behavior that result from changes in anticipated benefit levels. Policymakers can also use the models to calculate how changes in other government programs, such as TANF or SSI, affect receipt of Food Stamp benefits.

MATH (Micro Analysis of Transfers to Households) is a registered trademark of Mathematica Policy Research, Inc.

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