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Sequential macro-micro modelling with behavioural microsimulations

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Author Info

  • Jann Lay

    ()
    (German Institute of Global and Area Studies (GIGA), Hamburg, Germany and University of Göttingen, Germany)

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Abstract

This paper presents a sequential methodology that combines a macroeconomic CGE model with a behavioural microsimulation, illustrates the approach with applications, and discusses its merits and shortcomings. The microsimulation, based on a household income generation model, allows for incorporating individual fixed effects into macro-micro analysis. We argue that one of the main merits of the sequential approach is its flexibility. However, this flexibility comes at the cost of theoretical inconsistency.

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File URL: http://ima.natsem.canberra.edu.au/IJM/V3_1/IJM_26.pdf
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Bibliographic Info

Article provided by Interational Microsimulation Association in its journal International Journal of Microsimulation.

Volume (Year): 3 (2010)
Issue (Month): 1 ()
Pages: 24-34

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Handle: RePEc:ijm:journl:v:3:y:2010:i:1:p:24-34

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Web page: http://ima.natsem.canberra.edu.au/index.htm

Related research

Keywords: CGE model; behavioural microsimulation; applied model; developing countries;

References

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  1. Harrison, Glenn W. & Jones, Richard & Kimbell, Larry J. & Wigle, Randal, 1993. "How robust is applied general equilibrium analysis?," Journal of Policy Modeling, Elsevier, vol. 15(1), pages 99-115, February.
  2. François Bourguignon & Anne-Sophie Robilliard & Sherman Robinson, 2003. "Representative versus real households in the macro-economic modeling of inequality," DELTA Working Papers 2003-05, DELTA (Ecole normale supérieure).
  3. Denis Cogneau, 2001. "Formation du revenu, segmentation et discrimination sur le marché du travail d'une ville en développement : Antananarivo fin de siècle," Working Papers DT/2001/18, DIAL (Développement, Institutions et Mondialisation).
  4. Cogneau, Denis & Robilliard, Anne-Sophie, 2000. "Growth, distribution and poverty in Madagascar," TMD discussion papers 61, International Food Policy Research Institute (IFPRI).
  5. Creedy, John & Duncan, Alan, 2002. " Behavioural Microsimulation with Labour Supply Responses," Journal of Economic Surveys, Wiley Blackwell, vol. 16(1), pages 1-39, February.
  6. Sahn,David E. & Dorosh,Paul A. & Younger,Stephen D., 1999. "Structural Adjustment Reconsidered," Cambridge Books, Cambridge University Press, number 9780521665131, October.
  7. 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).
  8. Ann Harrison, 2006. "Globalization and Poverty," NBER Working Papers 12347, National Bureau of Economic Research, Inc.
  9. Bussolo, Maurizio & Lay, Jann & van der Mensbrugghe, Dominique, 2006. "Structural change and poverty reduction in Brazil : the impact of the Doha Round," Policy Research Working Paper Series 3833, The World Bank.
  10. Giulia Colombo, 2010. "Linking CGE and microsimulation models: a comparison of different approaches," International Journal of Microsimulation, Interational Microsimulation Association, vol. 3(1), pages 72-91.
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Cited by:
  1. Maheshwar Rao & Robert Tanton & Yogi Vidyattama, 2013. "‘A Systems Approach to Analyse the Impacts of Water Policy Reform in the Murray-Darling Basin: a conceptual and an analytical framework’," NATSEM Working Paper Series 13/22, University of Canberra, National Centre for Social and Economic Modelling.

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