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Macro/Micro-Economic Modelling and Gini Multi-Decomposition: An Application to the Philippines

Author

Listed:
  • Stéphane Mussard

    (LAMETA, Université Montpellier)

  • Luc Savard

    (GRÉDI, Université de Sherbrooke)

Abstract

Macro/micro-economic modelling has emerged as a rigorous instrument to link policy reforms with changes in income distribution. Indeed, this approach enables one to capture directly the general equilibrium effect of policy reforms upon changes in household welfare. These endogenous distributions combined with the Gini multi-decomposition provide powerful and detailed information for policy-makers interested in the trade-off between inequality and the efficient impact of reforms. Our results show that including the general equilibrium effect can yield results that differ from those of partial equilibrium analysis.

Suggested Citation

  • Stéphane Mussard & Luc Savard, 2010. "Macro/Micro-Economic Modelling and Gini Multi-Decomposition: An Application to the Philippines," Journal of Income Distribution, Ad libros publications inc., vol. 19(2), pages 51-78, June.
    • Handle: RePEc:jid:journl:y:2010:v:19:i:2:p:51-78
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    Citations

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    Cited by:

    1. Bourguignon, François & Bussolo, Maurizio, 2013. "Income Distribution in Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1383-1437, Elsevier.
    2. Lemelin, André & Savard, Luc, 2022. "What do CGE models have to say about fiscal reform?," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 758-774.
    3. Ole Boysen & Alan Matthews, 2008. "The Impact of Developed Country Agricultural Trade Liberalization on Poverty: A Survey," Working Papers hal-03416399, HAL.
    4. Deppermann, Andre & Offermann, Frank & Grethe, Harald, 2016. "Redistributive effects of CAP liberalisation: From the sectoral level to the single farm," Journal of Policy Modeling, Elsevier, vol. 38(1), pages 26-43.
    5. Dennis Fixler & David S. Johnson, 2014. "Accounting for the Distribution of Income in the U.S. National Accounts," NBER Chapters, in: Measuring Economic Sustainability and Progress, pages 213-244, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Gini; micro-simulation; multi-decomposition; Philippines;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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