Micro-simulation

Micro-simulation is a form of economic modelling where modelled individuals are passed through the model one by one, their results are stored, and then the experience of a cohort is obtained by aggregating the individual results. This is in contrast to most Markov modelling, where the full cohort’s experience is considered in a single pass through the model. Micro-simulation models are particularly useful when individuals have a mix of interrelated (and potentially changing) risk factors that influence their experience of a (chronic) disease over time, or where interactions between individuals are important (e.g. infectious disease). Although more complex to create, they may have a more general application than cohort Markov models, particularly for cohorts with different characteristics (risk factor mix) at the start of the modelled period.

See also patient-level simulation model.