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Linking representative household models with household surveys for poverty analysis : a comparison of alternative methodologies

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  • Agenor, Pierre-Richard
  • Chen, Derek H.C.
  • Grimm, Michael

Abstract

The authors compare three approaches to linking representative-household macro models with micro household income data in terms of their implications for measuring the poverty and distributional effects of policy shocks. These approaches are a simple micro-accounting method, an extension of that method to account for changes in employment structure, and the Beta distribution approach. Even though in the authors simulation exercises the three methods do not lead to fundamentally different results in absolute terms, they show that potential differences in the measurement of distributional and poverty effects of policy shocks can be very large.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3343.

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Date of creation: 01 Jun 2004
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Handle: RePEc:wbk:wbrwps:3343

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Keywords: Economic Theory&Research; Labor Policies; Health Economics&Finance; Services&Transfers to Poor; Environmental Economics&Policies; Inequality; Poverty Assessment; Health Economics&Finance; Environmental Economics&Policies; Economic Theory&Research;

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References

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  1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, Econometric Society, vol. 52(3), pages 761-66, May.
  2. Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Cahiers de recherche, Université Laval - Département d'économique 9909, Université Laval - Département d'économique.
  3. Robilliard, Anne-Sophie & Robinson, Sherman, 1999. "Reconciling household surveys and national accounts data using a cross entropy estimation method:," TMD discussion papers, International Food Policy Research Institute (IFPRI) 50, International Food Policy Research Institute (IFPRI).
  4. Grimm, Michael, 2004. "The Medium- and Long-term Effects of an Expansion of Education on Poverty in C.te d'Ivoire: A Dynamic Microsimulation Study," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Joachim Merz, 1994. "Microdata Adjustment by the Minimum Information Loss Principle," FFB-Discussionpaper, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg 10, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  6. Denis Cogneau, 2001. "Formation du revenu, segmentation et discrimination sur le marché du travail d'une ville en développement : Antananarivo fin de siècle," Working Papers, DIAL (Développement, Institutions et Mondialisation) DT/2001/18, DIAL (Développement, Institutions et Mondialisation).
  7. François Bourguignon & Anne-Sophie Robilliard & Sherman Robinson, 2003. "Representative versus real households in the macro-economic modeling of inequality," Working Papers, DIAL (Développement, Institutions et Mondialisation) DT/2003/10, DIAL (Développement, Institutions et Mondialisation).
  8. Dorothée Boccanfuso & Bernard Decaluwé & Luc Savard, 2003. "Poverty, Income Distribution and CGE Modeling: Does the Functional Form of Distribution Matter?," Cahiers de recherche, CIRPEE 0332, CIRPEE.
  9. Denis Cogneau & Michael Grimm, 2002. "AIDS and Income Distribution in Africa; A Micro-simulation Study for Côte d'Ivoire," Working Papers, DIAL (Développement, Institutions et Mondialisation) DT/2002/15, DIAL (Développement, Institutions et Mondialisation).
  10. Denis Cogneau & Anne-Sophie Robilliard, 2001. "Croissance, distribution et pauvreté : un modèle de micro simulation en équilibre général appliqué à Madagascar," Working Papers, DIAL (Développement, Institutions et Mondialisation) DT/2001/19, DIAL (Développement, Institutions et Mondialisation).
  11. John Cockburn, 2002. "Trade Liberalisation and Poverty in Nepal A Computable General Equilibrium Micro Simulation Analysis," Economics Series Working Papers, University of Oxford, Department of Economics WPS/2002-11, University of Oxford, Department of Economics.
  12. Decaluwé, Bernard & Dumont, Jean-Christophe & Savard, Luc, 2000. "Measuring Poverty and Inequality in a Computable General Equilibrium Model," Cahiers de recherche, Université Laval - Département d'économique 9926, Université Laval - Département d'économique.
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Citations

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Cited by:
  1. Agenor, Pierre-Richard, 2004. "Unemployment - poverty trade-offs," Policy Research Working Paper Series 3297, The World Bank.
  2. P R Agénor, 2004. "The Macroeconomics of Poverty Reduction," Centre for Growth and Business Cycle Research Discussion Paper Series, Economics, The Univeristy of Manchester 43, Economics, The Univeristy of Manchester.
  3. 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.
  4. Thurlow, James & Wobst, Peter, 2004. "The road to pro-poor growth in Zambia," DSGD discussion papers, International Food Policy Research Institute (IFPRI) 16, International Food Policy Research Institute (IFPRI).
  5. Agenor, Pierre-Richard & Bayraktar, Nihal & El Aynaoui, Karim, 2005. "Roads out of poverty? assessing the links between aid, public investment, growth, and poverty reduction," Policy Research Working Paper Series 3490, The World Bank.
  6. Estrades, Carmen, 2012. "Is MERCOSUR’s External Agenda Pro-Poor?: An assessment of the European Union-MERCOSUR free-trade agreement on poverty in Uruguay applying MIRAGE," IFPRI discussion papers, International Food Policy Research Institute (IFPRI) 1219, International Food Policy Research Institute (IFPRI).
  7. Lofgren, Hans & Cicowiez, Martin & Diaz-Bonilla, Carolina, 2013. "MAMS – A Computable General Equilibrium Model for Developing Country Strategy Analysis," Handbook of Computable General Equilibrium Modeling, Elsevier, Elsevier.
  8. Rodriguez, U-Primo E., 2007. "State-of-the-Art in Regional Computable General Equilibrium Modelling with a Case Study of the Philippines," Agricultural Economics Research Review, Agricultural Economics Research Association (India), Agricultural Economics Research Association (India), vol. 20(1).
  9. Sami Bibi & Rim Chatti, 2006. "Trade Liberalization and the Dynamics of Poverty in Tunisia: a Layered CGE Microsimulation Analysis/Libéralisation des échanges et dynamique de la pauvreté en Tunisie: Analyse avec une micro-simula," Working Papers MPIA, PEP-MPIA 2006-07, PEP-MPIA.
  10. Pinto Moreira, Emmanuel & Bayraktar, Nihal, 2005. "A macroeconomic framework for quantifying growth and poverty reduction strategies in Niger," Policy Research Working Paper Series 3506, The World Bank.
  11. Nicolas Hérault, 2009. "Les apports de la micro-simulation aux modèles d’équilibre général : application au cas de l’Afrique du Sud," Économie et Prévision, Programme National Persée, Programme National Persée, vol. 187(1), pages 123-135.
  12. 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, Cambridge University Press, vol. 8(03), pages 396-397, July.
  13. 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, August.
  14. Wobst, Peter & Thurlow, James, 2005. "The Road to Pro-Poor Growth in Zambia: Past Lessons and Future Challenges," Proceedings of the German Development Economics Conference, Kiel 2005 37, Verein für Socialpolitik, Research Committee Development Economics.

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