How Can Tax Policies And Macroeconomic Shocks Affect The Poor? A Quantitative Assessment Using A Computable General Equilibrium Framework For Colombia
AbstractDuring the past decade, particularly after the 1998-99 Colombian economic recession, economists have developed a renewed interest in the analysis and evaluation of welfare changes induced by public policies and economic shocks. The existing instruments to do this kind of exercises have usually lacked or excluded detailed microeconomic information that is relevant in the understanding and determination of the channels through which macroeconomic shocks affect the income distribution structure in Colombia. As a result, this research intends to fulfill this gap by presenting a simple static applied general equilibrium model in which a micro-macro link was built by reconciling the 1997 quality of life survey data with aggregates of the national accounts system. Specifically, by introducing a set of 8,701 households within a consistent macroeconomic framework, the model is able to produce poverty and income distribution indicators for specific segments of the population in four simulated scenarios: a reduction of tariffs, a general VAT rate for all products, a fall of the foreign inflows and a rise of the government obligations with the rest of the world. Despite the simple Arrow-Debreu structure implemented here, the estimated results are qualitatively and quantitatively important, specially in measuring the inequality and poverty changes that can arise as response of exogenous shocks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by BANCO DE LA REPÚBLICA - ESPE in its journal ENSAYOS SOBRE POLÍTICA ECONÓMICA.
Volume (Year): (2004)
Issue (Month): ()
Contact details of provider:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John Cockburn, 2002.
"Trade Liberalisation and Poverty in Nepal: A Computable General Equilibrium Micro Simulation Analysis,"
CSAE Working Paper Series
2002-11, Centre for the Study of African Economies, University of Oxford.
- John Cockburn, 2002. "Trade Liberalisation and Poverty in Nepal A Computable General Equilibrium Micro Simulation Analysis," Economics Series Working Papers WPS/2002-11, University of Oxford, Department of Economics.
- John Cockburn, 2004. "Trade Liberalisation and Poverty in Nepal A Computable General Equilibrium Micro Simulation Analysis," Development and Comp Systems 0409012, EconWPA.
- Victor Ginsburgh & Michiel Keyzer, 2002.
"The structure of applied general equilibrium models,"
ULB Institutional Repository
2013/3313, ULB -- Universite Libre de Bruxelles.
- Victor Ginsburgh & Michiel Keyzer, 2002. "The Structure of Applied General Equilibrium Models," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262571579, June.
- Victor Ginsburgh & Michiel Keyzer, 1997. "The structure of applied general equilibrium models," ULB Institutional Repository 2013/1653, ULB -- Universite Libre de Bruxelles.
- Decaluwé, Bernard & Patry, André & Savard, Luc, 1998.
"Income Distribution, Poverty Measures and Trade Shocks: A Computable General Equilibrium Model of a Archetype Developing Country,"
Cahiers de recherche
9812, Université Laval - Département d'économique.
- Decaluwe, B. & Patry, A. & Savard, L., 1998. "Income Distribution, Poverty Measures and Trade Shocks: A Computable General Equilibrium Model of a Archetype Developing Country," Papers 9812, Laval - Recherche en Politique Economique.
- Anne-Sophie Robilliard & Sherman Robinson, 2003.
"Reconciling Household Surveys and National Accounts Data Using a Cross Entropy Estimation Method,"
Review of Income and Wealth,
International Association for Research in Income and Wealth, vol. 49(3), pages 395-406, 09.
- Robilliard, Anne-Sophie & Robinson, Sherman, 1999. "Reconciling household surveys and national accounts data using a cross entropy estimation method:," TMD discussion papers 50, International Food Policy Research Institute (IFPRI).
- Claudio René KARL ESTUPIÑAN, 2004. "A real Financial Social Accounting Matrix for Colombia," ARCHIVOS DE ECONOMÃA 001930, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
- Hernandez, Gustavo Adolfo & Prada, Sergio & Ramirez, Juan Mauricio, 2001.
"Impacto Económico del programa de Desarrollo Alternativo del Plan Colombia
[Economic Impact of Plan Colombia's Alternative Development Program]," MPRA Paper 17844, University Library of Munich, Germany.
- Shoven,John B. & Whalley,John, 1992.
"Applying General Equilibrium,"
Cambridge University Press, number 9780521266550, November.
- Davies, James B., 2004. "Microsimulation, CGE and Macro Modelling for Transition and Developing Economies," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Rodriguez, U-Primo E., 2007. "State-of-the-Art in Regional Computable General Equilibrium Modelling with a Case Study of the Philippines," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 20(1).
- Dorothée BOCCANFUSO & Luc Savard & A. Diagne, 2004. "Impacts De La Libéralisation Commerciale De L’Agriculture Sur La Pauvreté Et La Distribution De Revenus Au Sénégal," Cahiers de recherche 04-11, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ESPE).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.