September 20, 1993

The Massachusetts Dynamic Analysis Model

The Dynamic Analysis Model is the combination of microsimulation and macroeconomic models used to address the critical needs of policy analysts assessing the impact of tax proposals on the economy. The REMI model was fused with a simulation model from the Tax Economics Department of Price Waterhouse to analyze economic impacts and dynamic feedbacks for Massachusetts’ most complex prospective policies. This report includes an example simulation of a revenue-neutral increase in the investment tax credit for corporations financed by equal proportionate increases in tax rates for all state taxes.

Massachusetts Department of Revenue – The Massachusetts Dynamic Analysis Model [full PDF]