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Policy options for meeting the Millennium Development Goals in Brazil : can micro-simulations help?

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  • Ferreira, Francisco H. G.
  • Leite, Phillippe G.

Abstract

The authors investigate whether micro-simulation techniques can shed light on the types of policies that should be adopted by countries wishing to meet their Millennium Development Goals. They compare two families of micro-simulations. The first family of micro-simulations decomposes required poverty changes into a change in the mean and a reduction in inequality. Although it highlights the importance of inequality reduction, it appears to be too general to be of much use for policymaking. The second family of micro-simulations is based on a richer model of behavior in the labor markets.It points to the importance of combining different policy options, such as educational expansion and targeted conditional redistribution schemes, to ensure that the poorest people in society are successfully reached. But the absence of market equilibria in these statistical models, as well as the strong stability assumptions which are implicit in their use, argue for extreme caution in their interpretation.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2975.

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Date of creation: 28 Feb 2003
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Handle: RePEc:wbk:wbrwps:2975

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Related research

Keywords: Public Health Promotion; Services&Transfers to Poor; Environmental Economics&Policies; Health Monitoring&Evaluation; Health Economics&Finance; Poverty Assessment; Achieving Shared Growth; Inequality; Governance Indicators; Environmental Economics&Policies;

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Cited by:
  1. Bussolo, Maurizio & De Hoyos, Rafael E. & Medvedev, Denis, 2011. "Distributional effects of the Panama Canal expansion," Policy Research Working Paper Series 5848, The World Bank.
  2. Leonardo Gasparini & Javier Alejo & Francisco Haimovich & Sergio Olivieri & Leopoldo Tornarolli, 2010. "Poverty among older people in Latin America and the Caribbean," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(2), pages 176-207.
  3. 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.
  4. 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.
  5. World Bank, 2005. "Bolivia : Poverty Assessment, Establishing the Basis for More Pro-Poor Growth," World Bank Other Operational Studies 8412, The World Bank.

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