DOI: 10.5683/sp3/2eiwgq
title: Social Policy Simulation Database/Model (SPSDM) [Canada]
title: SPSDM
title: Base de Données et Modèle de Simulation de Politiques Sociales [Canada]

description: &lt;p&gt;The Social Policy Simulation Database/Model (SPSD/M) is a tool designed to analyze the financial interactions between governments and individuals in Canada. It is used to evaluate the effects of the tax and transfer system on costs and income redistribution.&lt;/p&gt; &lt;p&gt;The SPSD/M has four basic components: a database (the SPSD), a model (the SPSM, which includes a set of simulation algorithms), software for data extraction and data reporting, and user documentation.&lt;/p&gt; &lt;p&gt;The SPSD/M is designed to be used in the analysis of the financial interactions between governments and individuals in Canada.&lt;/p&gt; &lt;p&gt;1. The SPSD/M is a representative and non-confidential statistical database of individuals in the context of their families, with sufficient information on each individual to enable the calculation of taxes paid to the government as well as amounts remitted by governments.&lt;br&gt;2. SPSM is a static accounting model that processes every individual and family in the SPSD, calculates taxes and transfers using algorithms that simulate adopted or proposed programs, and reports on results. A sophisticated software environment gives the user a great deal of influence over the model's inputs and outputs, enabling him or her to modify existing programs or examine entirely new projects. Inside MSPS, there are two models, configured as two separate computer programs.&lt;br&gt;2a.The central program, SPSM, is a microsimulation model that calculates taxes and transfers for individuals and families. These calculations are performed for everyone in the SPSD, and the results are then aggregated to produce estimates. The SPSM is a static incidence model and is not intended to simulate how an individual's behavior is likely to change in response to various policy options. The MSPS includes software that enables the user to perform summation and extraction operations on the information contained in the database. &lt;br&gt;2b. The consumption tax model (COMTAX) is a model based on macro-economic input-output data. This model is not part of the current version of SPSD/M, but the results obtained with it are. COMTAX estimates federal and provincial sales taxes and equivalent consumption taxes by province, household, expenditure category and tax type. This model is necessary because many consumption taxes are levied at various stages of production, not at the retail stage. The rates calculated by the COMTAX model can be used as input parameters to the SPSM to produce estimates of consumption taxes paid, directly and indirectly, by any given household. &lt;br&gt;3. Data extraction and reporting software are configured as functions that are accessed via the model. They enable the user to produce formatted output data and perform specific types of analysis. &lt;br&gt;4. The user documentation is voluminous and comprehensive. It is divided into three manuals containing a number of guides.&lt;/p&gt; &lt;p&gt;There are also two ways to run SPSM: using the Visual SPSM interface or the Classic SPSM mode. &lt;br&gt;1. SPSM Visual: The SPSM Visual interface allows users to modify model parameters, run SPSM simulations and examine output. &lt;br&gt;2.SPSM Classic: SPSM can also be run from the command interpreter (cmd). &lt;/p&gt; &lt;p&gt;For current data from the Social Policy Simulation Database/Model, see &lt;a href="https://www150.statcan.gc.ca/n1/en/catalogue/89F0002X" target="_blank"&gt;Statistics Canada&lt;/a&gt;&lt;/p&gt;
description: Migration from Nesstar
description: Social Policy Simulation Database/Model
description: Capabilities and Features The SPSD/M algorithms run on a database created from 2007 administrative and survey data. The SPSD/M comes with the parameters and algorithms needed to simulate the tax and transfer system for that year. The SPSD/M also makes projections for all other years, from 1997 to 2016. Here is a list of the main programs that can be simulated with the MSPS. Users can add their own algorithms to this set. Income tax<br>- Algorithms for tax years 1997 to 2016 <br>- Main deductions and tax credits<br>- Payroll taxes (CPP/QPP, EI) <br>- Provincial and federal tax algorithmsTransfers<br>- Employment insurance benefits <br>- Old-age security benefits, including partial benefits <br>- Guaranteed income supplement benefits, including partial benefits <br>- Provincial GIS supplement programs <br>- Federal child benefits <br>- GST tax credit Consumption Tax Model <br> - Eleven different types of tax taken into account, including: <br>- Federal customs duties <br>- Profit for provinces by liquor boards <br>- Federal fuel taxes <br>- Provincial fuel taxes <br>- Provincial retail sales taxes <br>- Multiplier effect between taxes <br>- Determination of household expenditure net of implicit consumption taxes