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The distributional impact of macroeconomic shocks in Mexico: threshold effects in a multi-region CGE model

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  • Harris, Rebecca Lee

Abstract

This paper presents a regionally disaggregated computable general equilibrium (CGE) model of Mexico in order to examine the differential effects of external shocks across the regions. The model demonstrates how the internal migration regime is affected by exogenous changes in the presence of threshold effects, in which an exogenous change may not effect regional behavior until the shocks are large enough to overcome the isolation of local markets. The results show that migration helps mitigate the income changes caused by the simulations.

Suggested Citation

  • Harris, Rebecca Lee, 1999. "The distributional impact of macroeconomic shocks in Mexico: threshold effects in a multi-region CGE model," TMD discussion papers 44, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:tmddps:44
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    File URL: http://www.ifpri.org/sites/default/files/publications/tmdp44.pdf
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    References listed on IDEAS

    as
    1. Richard C. Jones, 1998. "Remittances and Inequality: A Question of Migration Stage and Geographic Scale," Economic Geography, Taylor & Francis Journals, vol. 74(1), pages 8-25, January.
    2. Robinson, Sherman & Cattaneo, Andrea & El-Said, Moataz, 1998. "Estimating a social accounting matrix using cross entropy methods:," TMD discussion papers 33, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Coady, David P. & Harris, Rebecca Lee, 2001. "A regional general equilibrium analysis of the welfare impact of cash transfers: An analysis of PROGRESA in Mexico," TMD discussion papers 76, International Food Policy Research Institute (IFPRI).
    2. Coady, David & Harris, Rebecca Lee, 2004. "Evaluating targeted cash transfer programs: a general equilibrium framework with an application to Mexico," Research reports 137, International Food Policy Research Institute (IFPRI).

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