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Microsimulation models (MSM) and Computable General Equilibrium models (CGE) have both been widely used in policy analysis. The combination of these two model types allows the utilization of the advantages of both types. The aim of this paper is to describe the state-of-the-art in simulation modeling and to demonstrate the benefits of linking both model types modeling using a flat tax reform proposal for Germany

Simulationsmodelle zur ex ante Evaluation von Steuerreformen