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Guide to microsimulations linked to CGE models: How to introduce analysis of poverty and income distribution in CGE-based studies

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  • Estrades, Carmen

Abstract

Micro-macro syntheses have become a powerful tool to capture the micro effects of macro policies and external shocks on income distribution and poverty. The range of techniques is wide and their implementation will depend on the objectives of the study, the availability of time and data, and the compatibility with the macro model applied. This guide presents the different techniques and briefly describes their pros and cons. It also presents detailed instructions on how to implement two microsimulation techniques: a non-parametric microsimulation model and a representative household model. In order to illustrate both methods, a specific application to Tanzania is presented.

Suggested Citation

  • Estrades, Carmen, 2013. "Guide to microsimulations linked to CGE models: How to introduce analysis of poverty and income distribution in CGE-based studies," AGRODEP technical notes TN-09, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:agrotn:tn-09
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    File URL: https://www.ifpri.org/cdmref/p15738coll2/id/128238/filename/128449.pdf
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    Cited by:

    1. Mukashov, A., 2023. "Parameter uncertainty in policy planning models: Using portfolio management methods to choose optimal policies under world market volatility," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 187-202.
    2. Wolfgang Britz & Yaghoob Jafari & Alexandr Nekhay & Roberto Roson, 2020. "Modeling Trade and Income Distribution in Six Developing Countries A dynamic general equilibrium analysis up to the year 2050," Working Papers 2020:03, Department of Economics, University of Venice "Ca' Foscari".

    More about this item

    Keywords

    TANZANIA; EAST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; trade; Economic models; Computable General Equilibrium (CGE) model; C68 Computable General Equilibrium Models;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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