If you want estimate the expected impact of a policy intervention, for example a modification of a tax rate, you can use microsimulations. Microsimulations can inform decision makers on the possible effects of their policies on individual households and support them in evidence-based decision making.
Get to know more about them from our guest, an expert in microsimulations, Dr. Denisa M. Sologon
(Luxembourg Institute of Socio-Economic Research (LISER)).