Dynamic Microsimulation Model of the Czech

Republic
The Dynamic Microsimulation Model of the Czech Republic [1][2] is a dynamic microsimulation
pension model simulating the pension system of the Czech Republic, owned by the Ministry of Labour and
Social Affairs.[3]

The model was developed in 2011 by Deloitte. The project was funded with support from the European
Commission's Progress programme, for projects related to the development of administrative datasets and
models for labour market and pension analysis.[4]

Details
The model was implemented by Deloitte (Actuarial & Insurance Solutions, Central Europe) [5] using a
software system called Prophet developed by SunGard. A special library containing the entire code was
prepared by Deloitte specifically for this purpose.[1] Deloitte had previously developed and implemented
similar pension models in other countries, such as Hungary.[6]

The Dynamic Microsimulation Model allowed the Ministry of Labour and Social Affairs to use individual
data, along with aggregate results, to explore the impact on distribution of pensions, poverty of pensioners,
impact of the changes of the pension formula on distributional properties of the pension system and so on.

The model is parametrised to the existing pension system. However, all the major parameters of the current
system are stored in the system of tables and can be changed in order to investigate the impact of the
parameter change on the pension system. The model also includes the functionality of a funded pillar and
enables simulation of the impact of introduction of the funded pillar.

See also
Econometrics

References
1. Deloitte (2011). The summary based on the Final Project Report of the Dynamic Micro-
simulation Model of the Czech Republic (https://archive.is/20130102133027/http://www.deloi
tte.com/view/en_CZ/cz/publications/technical-articles/92ff26874a859310VgnVCM2000001b
56f00aRCRD.htm). Deloitte. Archived from the original (http://www.deloitte.com/view/en_CZ/
cz/publications/technical-articles/92ff26874a859310VgnVCM2000001b56f00aRCRD.htm)
on 2013-01-02.
2. Bednařík, Petr (2011). "Mikrosimulační model českého důchodového systému se
stochastickými kariérami". Pojistné rozpravy (in Czech). 28.
3. "Announcement of the Ministry of Labour and Social Affairs" (http://www.mpsv.cz/files/clank
y/10756/06052011.pdf) (PDF) (in Czech).
4. "European Commission, PROGRESS programme, Ref. No. VP/2009/006" (http://ec.europa.
eu/social/main.jsp?catId=987&langId=en&callId=211&furtherCalls=yes).
 5. "Deloitte A&IS" (https://archive.is/20130121144946/http://www.deloitte.com/view/en_CZ/cz/s
ervices/consulting/actuarial/index.htm). Archived from the original (http://www.deloitte.com/vi
ew/en_CZ/cz/services/consulting/actuarial/index.htm) on 2013-01-21.
6. Gál, R. I.; Horváth, A.; Orbán, G.; & Dekkers, G. (2009). PENMICRO: Monitoring pension
developments through micro socioeconomic instruments based on individual data sources:
feasibility study (http://ec.europa.eu/social/main.jsp?langId=en&catId=89&newsId=490&furth
erNews=yes). TARKI Social Research Institute. p. 67.

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