MSTEP models the effect of a change in width. At every step, the current wants to stay on the edge, and re-distributes to the new line width. That causes inductance and possibly shunt capacitance to ground, and element MSTEP models these parasitics.
Another use of MSTEP is when a transistor lead is smaller than the copper it connects to. Same situation: the current must re-distribute, and we use MSTEP to model that.
I created the picture below using EM simulation to show current density at such changes in line width. When using circuit models, MSTEP is used to represent these discontinuities.
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