ABSTRACT
This chapter explores the differential spatial impact of the United Kingdom (UK) Value Added Tax (VAT) rise on household expenditure on public and private transport and communication technology from 2006 to 2016. It explains the three elements: an agent-based dynamic population microsimulation model that produces projected snapshots of the UK population in 2006, 2011 and 2016; an expenditure system model based on the familiar Quadratic Almost Ideal Demand System approach; and synthetic small area census tables produced by projecting historical UK census data. Household projections from the UK Government at Local Authority level were used to normalize household numbers and the projected proportions were converted to projected household counts using these normalized total household counts. Demand System Model focused on a 'communication demand system' by including household expenditures on communications technologies, transport and as the residual, all other expenditures net of housing costs.
