Chapter 3 SESIM: A Swedish Micro-Simulation Model

In 1997, SESIM was developed as a tool at the Swedish ministry of finance to evaluate the Swedish system to finance higher education. Part of that work was documented in Ericson and Hussénius (2000). We refer to this as version I of SESIM. Focus then shifted from education to pensions. SESIM was used to evaluate the financial sustainability of the new Swedish pension system. This new application implied that SESIM was developed into a general micro-simulation model (MSM) that can be used for a broad set of issues. We refer to this as the second version of SESIM and the documentation is presented in Flood (2003). The present version, SESIM III, maintains the focus on pensions but extends the analyses to include health issues, regional mobility, and wealth.