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A Top-Down with Behaviour (TDB) Microsimulation Toolkit for Distributive Analysis

Author

Listed:
  • Luca Tiberti

    (Partnership for Economic Policy (PEP) and Université Laval, Québec, Canada.)

  • Martin Cicowiez

    (Partnership for Economic Policy (PEP) and Université Laval, La Plata, Argentina.)

  • John Cockburn

    (Partnership for Economic Policy (PEP), Nairobi, Kenya.)

Abstract

Computable General Equilibrium (CGE) models are often combined with microsimulation (MS) models to perform distributive impact analysis for fiscal or structural policies, or external shocks. This paper describes a user-friendly Stata-based toolkit to perform MSs combined with CGE models in a top-down fashion. The toolkit is organized in various modules, which can be easily adapted to the users’ needs. It first estimates income generation by type of work and skill of workers. Then it estimates households’ specific price deflators based on individual utility. The changes estimated by a CGE model (or from other sources) in the employment (by skill and sector), in the wage payroll (by skill), in the revenues from self-employment activities (by skill) as well as in the commodities prices are fed into the MS model in a consistent way. Once the new vector of real consumption or revenue is estimated, it performs a series of distributive analysis, such as the computation of standard poverty and inequality indices, their decomposition by income

Suggested Citation

  • Luca Tiberti & Martin Cicowiez & John Cockburn, 2018. "A Top-Down with Behaviour (TDB) Microsimulation Toolkit for Distributive Analysis," International Journal of Microsimulation, International Microsimulation Association, vol. 11(2), pages 191-213.
    • Handle: RePEc:ijm:journl:v11:y:2018:i:2:p:191-213
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    References listed on IDEAS

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    Cited by:

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    3. Tapias, J., 2021. "Temporary employment, informality, poverty and inequality," Documentos de trabajo - Alianza EFI 20047, Alianza EFI.
    4. Diallo, Souleymane Sadio & Mevel-Bidau, Simon, 2021. "Poverty Impact Assessment of the AfCFTA’s Implementation: A Macro-Micro Simulation Approach," Conference papers 333275, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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    More about this item

    Keywords

    CGE-MICROSIMULATION MODEL; POVERTY AND DISTRIBUTIVE ANALYSIS; UGANDA;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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