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 is important (e.g. infectious disease). Although more complex to create, they may have more general application (than cohort Markov models), in particular being applicable to cohorts with different characteristics (risk factor mix) at the start of the modelled period.
How to cite: Micro-Simulation [online]. (2016). York; York Health Economics Consortium; 2016. https://yhec.co.uk/glossary/micro-simulation/