A spatial microsimulation approach to economic policy analysis in Scotland

Regional scientists have increasingly been playing a very important role in the development and application of spatial microsimulation models for policy analysis. It has long been argued that spatial microsimulation modelling has enormous potential for the evaluation of the socio-economic and spatial effects of major developments in the regional or local economy. This paper aims to add to this rapidly expanding work, by presenting a new spatial microsimulation model (SIMALBA) for Scotland (the development of which was co-funded by the Scottish Government) and by demonstrating how it can be used to perform what-if policy analysis in Scotland. The focus of the paper is on economic aspects of social and spatial inequality in the capital of Scotland, Edinburgh. The paper shows how spatial microsimulation modelling can address previously unanswered research questions in Scotland, particularly those relating to fiscal policy. The SIMALBA model has estimated income data for Scotland at output area level geography and this is the focus of the various ‘what-if’ policy scenarios. Simulated data has been created using a deterministic reweighing algorithm to build a spatial microsimulation model by combining UK Census data for 2001 and Scottish Health Survey (SHS) data for 2003. The analysis demonstrates the importance of geography by examining trends at OA level in Scotland. The paper concludes with a discussion of the simulated data and resulting policy scenarios as well as the impact of this analysis for policy formation in Scotland. Resumen. Los investigadores de ciencias regionales llevan tiempo jugando un papel cada vez mas importante en el desarrollo y aplicacion de modelos de microsimulacion espacial para el analisis de politicas. Durante mucho tiempo se ha argumentado que la modelizacion de microsimulacion espacial tiene un potencial enorme para la evaluacion de los efectos socioeconomicos y espaciales de los principales cambios en la economia regional o local. Este articulo tiene por objeto contribuir a esta corriente de estudio en rapida expansion, mediante la presentacion de un nuevo modelo de microsimulacion espacial (SIMALBA) para Escocia (cuyo desarrollo fue co-financiado por el Gobierno de Escocia) y una demostracion de su utilizacion para realizar un analisis ‘what-if’ para politicas en Escocia. Este articulo se centra en los aspectos economicos de las desigualdades sociales y espaciales de Edimburgo, la capital de Escocia. El articulo muestra como la modelizacion de microsimulacion espacial puede abordar cuestiones de investigacion hasta ahora sin responder en Escocia, en particular las relativas a las politicas fiscales. El modelo SIMALBA ha estimado los datos de ingresos de Escocia a nivel geografico de area de salida (OAC en ingles) y este es el objetivo principal de los diferentes escenarios de politicas ‘what-if’. Los datos de simulacion se crearon utilizando un algoritmo de reponderacion determinista para construir un modelo de microsimulacion espacial mediante la combinacion de datos del censo de 2001 del Reino Unido y datos de 2003 de la Encuesta de Salud de Escocia (SHS por sus siglas en ingles). El analisis demuestra la importancia de la geografia mediante el examen de tendencias a nivel de area de salida en Escocia. El articulo concluye con una discusion de los datos de simulacion y los escenarios politicos resultantes, asi como del impacto de este analisis para la formulacion de politicas en Escocia.

[1]  H. Sutherland Tax and Benefit Policies in the Enlarged Europe: Assessing the Impact with Microsimulation Models , 2009 .

[2]  Graham Clarke,et al.  Examining access to GP services in rural Ireland using microsimulation analysis , 2008 .

[3]  D. M. Smith THE GEOGRAPHY OF SOCIAL WELL-BEING , 1974 .

[4]  M. Pacione The geography of multiple deprivation in Scotland , 1995 .

[5]  Felix Rauschmayer,et al.  Environment and Planning C: Government and Policy 2009, volume 27, pages 42^58 , 2009 .

[6]  M. Pacione Britain's Cities: Geographies of Division in Urban Britain , 1999 .

[7]  D. Ballas Simulating trends in poverty and income inequality on the basis of 1991 and 2001 census data: a tale of two cities , 2004 .

[8]  P H Rees,et al.  The Estimation of Population Microdata by Using Data from Small Area Statistics and Samples of Anonymised Records , 1998, Environment & planning A.

[9]  D. Dorling,et al.  Injustice: Why Social Inequality Persists , 2011 .

[10]  S. Bertazzon,et al.  A Spatial Analysis of the Demographic and Socio-economic Variables Associated with Cardiovascular Disease in Calgary (Canada) , 2010 .

[11]  R. Martin Geography and public policy: the case of the missing agenda , 2001 .

[12]  Martin Clarke,et al.  Spatial Microsimulation Models: A Review and a Glimpse into the Future , 2011 .

[13]  Mark H. Birkin,et al.  A spatial microsimulation model with student agents , 2008, Comput. Environ. Urban Syst..

[14]  G. Macleod,et al.  Devolution and the Shifting Political Economic Geographies of the United Kingdom Introduction and Context , 2012 .

[15]  Robert Tanton,et al.  Spatial microsimulation as a method for estimating different poverty rates in Australia , 2011 .

[16]  P. McLoone,et al.  Inequalities in life and death: what if Britain were more equal? , 2001 .

[17]  Robert H. Frank,et al.  Falling Behind: How Rising Inequality Harms the Middle Class , 2007 .

[18]  G. Orcutt,et al.  A new type of socio-economic system , 1957 .

[19]  Ann Harding,et al.  SPATIAL MICROSIMULATION USING SYNTHETIC SMALL-AREA ESTIMATES OF INCOME, TAX AND SOCIAL SECURITY BENEFITS , 2005 .

[20]  Graham Clarke,et al.  SimBritain: a spatial microsimulation approach to population dynamics , 2005 .

[21]  A. Harding,et al.  Microsimulation and Public Policy , 1996 .

[22]  D. Ballas,et al.  Poverty, wealth and place in Britain, 1968 to 2005 , 2007 .

[23]  D. Ballas,et al.  Using SimBritain to Model the Geographical Impact of National Government Policies , 2007 .

[24]  A. Evans,et al.  SimCrime: A Spatial Microsimulation Model for the Analysing of Crime in Leeds. , 2006 .

[25]  Amartya Sen,et al.  On Ethics and Economics , 1988 .

[26]  Michael Pacione,et al.  Glasgow: The Socio-Spatial Development of the City , 1995 .

[27]  Graham Clarke,et al.  Modelling the Socio-economic Impacts of Major Job Loss or Gain at the Local Level: a Spatial Microsimulation Framework , 2006 .

[28]  G. Nigel Gilbert,et al.  Simulation for the social scientist , 1999 .

[29]  Graham Clarke,et al.  Modelling the Local Impacts of National Social Policies: A Spatial Microsimulation Approach , 2001 .

[30]  C. Pantazis,et al.  Breadline Britain in the 1990s , 2018 .

[31]  Jamie Peck Editorial: Grey Geography? , 1999 .

[32]  Graham Clarke,et al.  The geography of smoking in Leeds: estimating individual smoking rates and the implications for the location of stop smoking services , 2008 .

[33]  David M. Smith,et al.  Human geography: A welfare approach , 1977 .

[34]  M. Madden Welfare payments and migration in a nonlinear, extended input-output model with an application to Scotland , 1993 .

[35]  W. Runciman Relative Deprivation and Social Justice , 1966 .

[36]  R. Wilkinson,et al.  The spirit level : why equality is better for everyone , 2010 .

[37]  M. Keating The Independence of Scotland: Self-Government and the Shifting Politics of Union , 2009 .

[38]  Gary Thomas,et al.  The Spirit Level: why equality is better for everyone , 2012 .

[39]  G. Nigel Gilbert,et al.  Agent-Based Models , 2007 .

[40]  M. Keating The Independence of Scotland , 2009 .

[41]  Holly Sutherland,et al.  Microsimulation Modelling for Policy Analysis: Challenges and Innovations , 2000 .

[42]  Peteke Feijten,et al.  Cohort Profile: the Scottish Longitudinal Study (SLS). , 2009, International journal of epidemiology.

[43]  Graham Clarke,et al.  Microsimulation for urban and regional policy analysis , 1996 .

[44]  Graham Clarke,et al.  Building a static farm level spatial microsimulation model for rural development and agricultural policy analysis in Ireland , 2009 .

[45]  Kimberley L Edwards,et al.  The design and validation of a spatial microsimulation model of obesogenic environments for children in Leeds, UK: SimObesity. , 2009, Social science & medicine.

[46]  A. Law,et al.  Competitive Nationalism: State, Class, and the Forms of Capital in Devolved Scotland , 2012 .

[47]  M. Danson,et al.  Devolution, Institutions, and Organisations: Changing Models of Regional Development Agencies , 2012 .

[48]  Graham Clarke,et al.  Spatial microsimulation for rural policy analysis in Ireland: The implications of CAP reforms for the national spatial strategy , 2006 .

[49]  Kirk Harland,et al.  Can a deterministic spatial microsimulation model provide reliable small-area estimates of health behaviours? An example of smoking prevalence in New Zealand. , 2011, Health & place.

[50]  C. Hamnett The reshaping of the British welfare system and its implications for geography and geographers , 2011 .

[51]  Mark McAteer,et al.  Scotching The Myth: Analysing the Relations Between A Scottish Parliament and Westminster , 1997 .

[52]  E. Holm,et al.  Microsimulation for Local Impact Analysis: An Application to Plant Shutdown , 2005 .

[53]  Einar Holm,et al.  Economic-Demographic Effects of Immigration: Results from a Dynamic Spatial Microsimulation Model , 2004 .

[54]  M. Keating The Government of Scotland: Public Policy Making After Devolution , 2005 .

[55]  P. Gregg,et al.  Feature: In‐work Benefit Reform in a Cross‐National Perspective ‐ Introduction , 2009 .

[56]  R. Bennett The geography of public finance , 1980 .

[57]  M. Shaw,et al.  Geographies of the agenda: public policy, the discipline and its (re)‘turns’ , 2002 .

[58]  L. Doyal,et al.  A Theory of Human Need , 1991 .

[59]  P. Cairney Venue Shift Following Devolution: When Reserved Meets Devolved in Scotland , 2006 .