Large-Scale Optimization Modeling at the US Treasury Department: An Update

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The US Treasury Department (Office of Tax Analysis) estimates the impact of proposed changes to the US tax code. Their forecasted distribution of potential benefits and losses on various subpopulations plays a significant role in Congressional tax policy debate. Three large-scale optimization models are essential in estimating revenue; one—optimal cluster analysis—was described in a previous Interfaces article, October 1980, and is brought up to date here.

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