The purpose of this study is to develop a dynamic micro-simulation model for social policy analysis (DOSA), an extended and consolidated version of our previous two models introduced in 2013 (MMESP) and 2014 (K.sim). Newly equipped with an asset module based on up-to-date basic input data, DOSA now can be used to evaluate the future performance of the National Pension System, Basic Pension scheme and the
current income tax code simultaneously.

This study is organized as follows. Chapter 2 reviews contemporary MSM models developed and exercised in the US, Canada, Sweden and the UK. Chapters 3 explains the basic structure of DOSA and its research implication to the Korean welfare system. Chapters 4 through 8 give a thorough illustration of technical methodologies adopted in developing each module of DOSA. In order to confirm the appropriateness and
efficacy of DOSA as a tool for social policy analysis, Chapter 9 exhibits three different policy simulations using the model, focusing on the impact of income taxation and pension incomes to long-term trends in old-age poverty rates.