Spatial Microsimulation Using Small Area Estimates of Income, Tax and Social Security Benefits

Shih-Foong Chin, Ann Harding, Rachel Lloyd, Justine McNamara, Ben Phillips, Quoc Vu

    Research output: A Conference proceeding or a Chapter in BookConference contribution

    Abstract

    A spatial microsimulation technique using the ‘reweighting’ approach has been developed at NATSEM to produce synthetic estimates for small areas. This is a novel way to create small-area socio-economic data that are otherwise unavailable from other sources. This paper reports on the application of the technique to produce estimates of income, tax, and social security benefits for the Statistical Local Areas (SLAs) in three States and one Territory in Australia. The spatial technique utilises the 1998-99 Household Expenditure Survey (HES) data and the 2001 Census data, both from the Australian Bureau of Statistics. The process involves the ‘reweighting’ of the household unit record weights at the national level obtained from the HES to produce household unit record weights for each SLA. These SLA household weights are then applied to the selected output variables generated by NATSEM’s STINMOD Model to produce the required small-area synthetic estimates for SLAs. This paper explains how spatial microsimulation is undertaken to ‘regionalise’ STINMOD. It presents the results of the synthetic small-area estimates and measures the reliability of these estimates against Census counts and against data from independent sources. This paper also provides an example to illustrate how the spatial technique may be used to assess the local impact of government policy changes, by simulating the spatial effects of the tax cuts announced in the recent Australian Government Budget.
    Original languageEnglish
    Title of host publicationThe 35th Annual Conference of the Australian and New Zealand Regional Science Association International
    Place of PublicationAuckland, New Zealand
    PublisherNATSEM
    Pages1-46
    Number of pages46
    Publication statusPublished - 2005
    EventANZSRAI 2005 Conference - Auckland, New Zealand
    Duration: 27 Sep 200530 Sep 2005

    Conference

    ConferenceANZSRAI 2005 Conference
    CountryNew Zealand
    CityAuckland
    Period27/09/0530/09/05

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    social security
    household expenditure
    census
    household
    income tax

    Cite this

    Chin, S-F., Harding, A., Lloyd, R., McNamara, J., Phillips, B., & Vu, Q. (2005). Spatial Microsimulation Using Small Area Estimates of Income, Tax and Social Security Benefits. In The 35th Annual Conference of the Australian and New Zealand Regional Science Association International (pp. 1-46). Auckland, New Zealand: NATSEM.
    Chin, Shih-Foong ; Harding, Ann ; Lloyd, Rachel ; McNamara, Justine ; Phillips, Ben ; Vu, Quoc. / Spatial Microsimulation Using Small Area Estimates of Income, Tax and Social Security Benefits. The 35th Annual Conference of the Australian and New Zealand Regional Science Association International . Auckland, New Zealand : NATSEM, 2005. pp. 1-46
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    Chin, S-F, Harding, A, Lloyd, R, McNamara, J, Phillips, B & Vu, Q 2005, Spatial Microsimulation Using Small Area Estimates of Income, Tax and Social Security Benefits. in The 35th Annual Conference of the Australian and New Zealand Regional Science Association International . NATSEM, Auckland, New Zealand, pp. 1-46, ANZSRAI 2005 Conference, Auckland, New Zealand, 27/09/05.

    Spatial Microsimulation Using Small Area Estimates of Income, Tax and Social Security Benefits. / Chin, Shih-Foong; Harding, Ann; Lloyd, Rachel; McNamara, Justine; Phillips, Ben; Vu, Quoc.

    The 35th Annual Conference of the Australian and New Zealand Regional Science Association International . Auckland, New Zealand : NATSEM, 2005. p. 1-46.

    Research output: A Conference proceeding or a Chapter in BookConference contribution

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    AU - Lloyd, Rachel

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    AU - Phillips, Ben

    AU - Vu, Quoc

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    AB - A spatial microsimulation technique using the ‘reweighting’ approach has been developed at NATSEM to produce synthetic estimates for small areas. This is a novel way to create small-area socio-economic data that are otherwise unavailable from other sources. This paper reports on the application of the technique to produce estimates of income, tax, and social security benefits for the Statistical Local Areas (SLAs) in three States and one Territory in Australia. The spatial technique utilises the 1998-99 Household Expenditure Survey (HES) data and the 2001 Census data, both from the Australian Bureau of Statistics. The process involves the ‘reweighting’ of the household unit record weights at the national level obtained from the HES to produce household unit record weights for each SLA. These SLA household weights are then applied to the selected output variables generated by NATSEM’s STINMOD Model to produce the required small-area synthetic estimates for SLAs. This paper explains how spatial microsimulation is undertaken to ‘regionalise’ STINMOD. It presents the results of the synthetic small-area estimates and measures the reliability of these estimates against Census counts and against data from independent sources. This paper also provides an example to illustrate how the spatial technique may be used to assess the local impact of government policy changes, by simulating the spatial effects of the tax cuts announced in the recent Australian Government Budget.

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    Chin S-F, Harding A, Lloyd R, McNamara J, Phillips B, Vu Q. Spatial Microsimulation Using Small Area Estimates of Income, Tax and Social Security Benefits. In The 35th Annual Conference of the Australian and New Zealand Regional Science Association International . Auckland, New Zealand: NATSEM. 2005. p. 1-46