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The RMSM-S+P : a minimal poverty module for the RMSM-X

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Author Info
Chen,Derek Hung Chiat
Ranaweera,Thilakaratna
Storozhuk, Andriy
Abstract

The authors present a new tool, the RMSM-X+P, which essentially consists of a RMSM-X model with an additional module for poverty and social indicators. This linkage facilitates the analysis of the impact of various macroeconomic shocks on a selected set of key social indicators. Poverty analysis is performed by the use of a poverty equation (which is estimated using pooled data for a group of low-income countries) that links the incidence of poverty to inflation, the literacy rate, real GDP per capita, the degree of trade openness, and income inequality. Similarly, the authors analyze the effects of various macroeconomic shocks on education and health with the aid of equations for education and health. This new tool allows the user to address a limited number of policy issues. However, it does possess several merits, perhaps the most substantial being that it permits the users to move beyond approaches that focus on the partial correlation between growth and poverty in discussions of poverty reduction.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3304.

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Date of creation: 01 May 2004
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Handle: RePEc:wbk:wbrwps:3304

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Keywords: Health Systems Development&Reform; Public Health Promotion; Health Economics&Finance; Environmental Economics&Policies; Health Monitoring&Evaluation; Health Monitoring&Evaluation; Achieving Shared Growth; Governance Indicators; Environmental Economics&Policies; Health Economics&Finance;

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  3. Galor, Oded & Zeira, Joseph, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Blackwell Publishing, vol. 60(1), pages 35-52, January. [Downloadable!] (restricted)
  4. Demery, Lionel & Squire, Lyn, 1996. "Macroeconomic Adjustment and Poverty in Africa: An Emerging Picture," World Bank Research Observer, Oxford University Press, vol. 11(1), pages 39-59, February.
  5. Christina D. Romer & David H. Romer, 1998. "Monetary policy and the well-being of the poor," Proceedings, Federal Reserve Bank of Kansas City, pages 159-201. [Downloadable!]
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  6. Sangmok Choi & Bruce D. Smith & John H. Boyd, 1996. "Inflation, financial markets and capital formation," Proceedings, Federal Reserve Bank of St. Louis, issue May, pages 9-35. [Downloadable!]
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  7. Alesina, Alberto & Perotti, Roberto, 1996. "Income distribution, political instability, and investment," European Economic Review, Elsevier, vol. 40(6), pages 1203-1228, June. [Downloadable!] (restricted)
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  8. Anand, Sudhir & Ravallion, Martin, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 133-50, Winter. [Downloadable!] (restricted)
  9. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September. [Downloadable!] (restricted)
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  10. José De Gregorio & Jong-Wha Lee, 1999. "Education and Income Distribution: New Evidence from Cross-country Data," Documentos de Trabajo 55, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
  11. Greenaway, David & Morgan, Wyn & Wright, Peter, 2002. "Trade liberalisation and growth in developing countries," Journal of Development Economics, Elsevier, vol. 67(1), pages 229-244, February. [Downloadable!] (restricted)
  12. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," World Bank Economic Review, Oxford University Press, vol. 11(2), pages 357-82, May.
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  13. Eduardo Lora & Mauricio Olivera, 1998. "Macro Policy and Employment Problems in Latin America," RES Working Papers 4116, Inter-American Development Bank, Research Department. [Downloadable!]
  14. Aleš Bulir & Anne Marie Gulde, 1995. "Inflation and Income Distribution - Further Evidence on Empirical Links," IMF Working Papers 95/86, International Monetary Fund.
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  16. Jeffrey A. Frankel & David Romer, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June. [Downloadable!] (restricted)
  17. Dollar, David & Kraay, Aart, 2001. "Trade, growth, and poverty," Policy Research Working Paper Series 2615, The World Bank. [Downloadable!]
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  18. Pritchett, Lant & Summers, Lawrence H., 1993. "Wealthier is healthier," Policy Research Working Paper Series 1150, The World Bank. [Downloadable!]
  19. Gundlach, Erich & De Pablo, Jose Navarro & Weisert, Natascha, 2001. "Education Is Good for the Poor: A Note on Dollar and Kraay (2001)," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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