Micro-simulation and Multi-decomposition: A Case Study: Philippines
AbstractThis article combines computable general equilibrium (CGE) micro-simulation modeling and the Gini multi-decomposition analysis. The CGE-micro-simulation approach enables one to generate endogenous income distributions following government policy interventions. The introduction of these endogenous distributions into the Gini multi-decomposition, that merges income source and subgroup decompositions, provides powerful information to decision makers, which analyze the trade-off between inequality and efficiency whereas Gini multi-decomposition is usually applied in a partial equilibrium context. This is done by imposing the assumption that either the income or the price effects are exogenous.
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Bibliographic InfoPaper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 05-02.
Length: 31 pages
Date of creation: 2005
Date of revision:
; Micro-simulation; Multi-decomposition; Philippines.;
Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-08-13 (All new papers)
- NEP-CMP-2005-08-13 (Computational Economics)
- NEP-SEA-2005-08-13 (South East Asia)
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