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Macro/Micro-Economic Modelling and Gini Multi-Decomposition: An Application to the Philippines

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  • Stéphane Mussard

    ()
    (LAMETA, Université Montpellier)

  • Luc Savard

    ()
    (GRÉDI, Université de Sherbrooke)

Abstract

Macro/micro-economic modelling has emerged as a rigorous instrument to link policy reforms with changes in income distribution. Indeed, this approach enables one to capture directly the general equilibrium effect of policy reforms upon changes in household welfare. These endogenous distributions combined with the Gini multi-decomposition provide powerful and detailed information for policy-makers interested in the trade-off between inequality and the efficient impact of reforms. Our results show that including the general equilibrium effect can yield results that differ from those of partial equilibrium analysis.

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Bibliographic Info

Article provided by Journal of Income Distribution in its journal Journal of Income Distribution.

Volume (Year): 19 (2010)
Issue (Month): 2 (June)
Pages: 51-78

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Handle: RePEc:jid:journl:y:2010:v:19:i:2:p:51-78

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Keywords: Gini; micro-simulation; multi-decomposition; Philippines;

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Cited by:
  1. Dennis Fixler & David S. Johnson, 2012. "Accounting for the Distribution of Income in the U.S. National Accounts," NBER Chapters, in: Measuring Economic Sustainability and Progress National Bureau of Economic Research, Inc.

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