Bolivia: Impact of shocks and poverty policy on household welfare
AbstractThis paper evaluates the short term impacts on poverty of pro-poor expenditure during the 1998-2002 period of Bolivian economic recession. Observed characteristics of recession are simulated by the combined effects of negative terms of trade shock, reduction in foreing saving flows and low output growth. Evaluation is performed by simulating the impacts of shocks and social expendituresin an environment of low growth: i) on macro aggregates of consumption, income, saving and prices (based on a simple static 1-2-3 model), ii) on household income and consumption levels, and iii)on consumption based poverty indicators. The following were main results from experiments: The termsof trade shock had greater negative impact on household income then reduction in foreing saving flows. In contrast, reduction in foreing saving flows had greater negative impact on house hold consumption then the terms of trade shock. The head count ratio has been greater from reduction in foreing saving flows then from the terms of trade shock. Poverty gap and poverty intensity has concentrated in rural áreas, being greater from reduction in foreing saving flows then from the terms of trade shock. The Combined positive effects from observed social expenditure policy and effort in an environment of low output gorwth, did not compensate the combined negative impacts from the experienced terms of trade shock and reduction in foreing saving flows. These conclusions show that under macroeconomic disequilibrium poverty reduction efforts become policies of poverty contaiment or safety net programs. Poverty reduction is a long term objetive that requires long term commitment for an enviroment on macroeconomic stability.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana in its journal Revista Latinoamericana de Desarrollo Economico.
Volume (Year): (2006)
Issue (Month): 6 (Abril)
Contact details of provider:
Postal: Universidad católica Boliviana San Pablo, Instituto de Investigaciones Socio Económicas, Av. 14 de septiembre 4807. Obrajes, La Paz, Bolivia
Phone: (591-2) 784159
Fax: (591-2) 786707
Web page: http://www.iisec.ucb.edu.bo
More information through EDIRC
growth; Bolivia; poverty;
Other versions of this item:
- Barja, Gover & Monterrey, Javier & Villarroel, Sergio, 2004. "Bolivia: Impact of shocks and poverty policy on household welfare," MPRA Paper 22937, University Library of Munich, Germany.
- Z00 - Other Special Topics - - General - - - General
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.:
- Devaragan, Shantayanan & Lewis, Jeffrey D. & Robinson, Sherman, 1990. "Policy lessons from trade-focused, two-sector models," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 625-657.
- Angus Deaton & Salman Zaidi, 1999.
"Guidelines for Constructing Consumption Aggregates For Welfare Analysis,"
217, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
- Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101, October.
- Deaton, A. & Zaidi, S., 1999. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," Papers 192, Princeton, Woodrow Wilson School - Development Studies.
- Barja, Gover & Urquiola, Miguel, 2003. "Capitalization and Privatization in Bolivia: An Aproximation to an Evaluation," MPRA Paper 23049, University Library of Munich, Germany.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Andersen, Lykke Eg, 2002.
"Baja Movilidad Social en Bolivia: Causas y Consecuencias para el Desarrollo,"
Documentos de trabajo
2/2002, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
- Andersen, Lykke E., 2003. "Baja movilidad social en Bolivia:causas y consecuencias para el desarrollo," Revista Latinoamericana de Desarrollo Economico, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana, issue 1, pages 11-36, Septiembr.
- Barja, Gover & Urquiola, Miguel, 2001.
"Capitalization, regulation and the poor: access to basic services in Bolivia,"
23920, University Library of Munich, Germany, revised Jul 2001.
- Barja, Gover & Urquiola, Miguel, 2001. "Capitalization, Regulation and the Poor: Access to Basic Services in Bolivia," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Gover Barja Daza & Javier Monterrey Arce & Sergio Villarroel Bohrt, 2005. "The Elasticity of Substitution in Demand for Non-Tradable Goods in Bolivia," Research Department Publications 3181, Inter-American Development Bank, Research Department.
- Devarajan, Shantayanan & Lewis, Jeffrey D & Robinson, Sherman, 1993. "External Shocks, Purchasing Power Parity, and the Equilibrium Real Exchange Rate," World Bank Economic Review, World Bank Group, vol. 7(1), pages 45-63, January.
- Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
- Theile, Rainer & Wiebelt, Manfred, 2003. "Attacking Poverty in Bolivia – Past Evidence and Future Prospects: Lessons from a CGE Analysis," Documentos de trabajo 6/2003, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
- Lanjouw, Jean Olson & Lanjouw, Peter, 1997. "Poverty comparisons with non-compatible data: theory and illustrations," Policy Research Working Paper Series 1709, The World Bank.
- Anonymous, 2009. "Journal of International Agricultural Trade and Development, Volume 5, Issue 1," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 5(1).
- Essama-Nssah, B., 2005. "The poverty and distributional impact of macroeconomic shocks and policies : a review of modeling approaches," Policy Research Working Paper Series 3682, The World Bank.
- Behrman, Jere R., 2009. "Analyzing the Distributional Impact of Reforms, Volume Two: A Practitioner's Guide to Pension, Health, Labor Market, Public Sector Downsizing, Taxation, Decentralization, and Macroeconomic Modeling. A," Journal of Pension Economics and Finance, Cambridge University Press, vol. 8(03), pages 396-397, July.
- Aline Coudouel & Stefano Paternostro, 2006. "Analyzing the Distributional Impact of Reforms : A Practitioner’s Guide to Pension, Health, Labor Markets, Public Sector Downsizing, Taxation, Decentralization, and Macroeconomic Modeling, Volume 2," World Bank Publications, The World Bank, number 7041, October.
- Marta Moratti, 2010. "Consumption Poverty and Pro-Poor Growth in Bolivia," Working Paper Series 1310, Department of Economics, University of Sussex.
- Yanez-Pagans, Monica, 2008. "Culture and Human Capital Investments: Evidence of an Unconditional Cash Transfer Program in Bolivia," IZA Discussion Papers 3678, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tirza July Aguilar Salas).
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.