SOCIAL WELFARE MODELS

A wide range of policy models are available, today, with varied complexity for analyzing the effects of social welfare reform in problematic areas such as social security, health care, poverty, education, etc. These models are used to help policy makers estimate how policy changes will impact the welfare of the public in the short and long term. Before any reforms can be solicited by lawmakers, they have the responsibility to the public to evaluate information given to them in various modeling strategies, and weigh the usefulness of the model for accuracy projection on how reforms will affect economic variables and the net social benefits of alternative outcomes (Toder, 2000, pp. 1-15).
Three policy model approaches submitted by the The Urban Institute and funded by the Social Security Administration in year 2000 consisted of cell-based, microsimulation and general equilibrium. Although these models were designed for social security reform analysis, they are also advantageous in areas of health care reform and poverty.
Microsimulation model is different than other types of model as it’s mode of operandi is on individual soc...