“DYNACAN is a Canadian, stochastic (Monte Carlo), open, longitudinal, dynamic microsimulation model developed for generating longitudinal and cross-sectional, as well as fiscal and policy-oriented analyses of Canadian Social Security Schemes such as the Canada Pension Plan (CPP), the Old Age Security (OAS) Program and the Guaranteed Income Supplement (GIS). DYNACAN is validated in many respects, the main one being that its demographic and financial results are made consistent with those of the macrosimulation model ACTUCAN. ACTUCAN is the model used by the Chief Actuary for Canadian public pensions plans for purposes of the statutory actuarial valuations of the CPP and the OAS.
DYNACAN is a microsimulation model in the sense that its fundamental unit of analysis is the individual. However, these individuals, over 212,000 of them in the full version of the starting database, are always treated in the context of the families in which they reside.
It is Canadian in that, collectively, the individuals are generally representative of the total Canadian population. This representativeness applies first in 1971, for the starting data base, and then on through the projection period as the modelled population evolves as a result of the simulated events. However, the population of Quebec, though modelled in DYNACAN, is typically not directly relevant for CPP calculations.
DYNACAN is longitudinal in the sense of projecting the individuals forward through time, synthesizing entire realistic life histories as regards the events relevant for CPP contributions and benefits. This is appropriate given its companion status to the CPP Actuarial Valuation Model (ACTUCAN).
It is dynamic in the sense of generating an evolving population, whose characteristics — size, membership and family configurations — change over time. – It is a stochastic (Monte Carlo) model in the sense of using “random” numbers in its simulation of the events (births, deaths, marriages, retirement, etc.) associated with that evolution.
DYNACAN is open in the sense that it allows additions to the population through births and immigration and departures through deaths and emigration.”
The DYNACAN project was officially terminated as of June 1, 2009 according to its website.