This paper describes a general equilibrium based social policy model for Cote d'Ivoire whose aim is both to facilitate analysis of a wide range of social policy options, any of which could conceivablybe pursued in Cote d'Ivoire over the next five or ten years, and to provide a basis for further model development to cover explicit monetary, macro, and stabilization issues which are central to current Ivorian policy debate. As it now stands, the model is a classical real side general equilibrium model in the public finance tradition, modified to capture such key Ivorian features as domestic price stabilization schemes, large interhousehold transfers, the informal sector, and other features. The model allows for detailed analysis within a general equilibrium framework. This also captures relative price effects, financing implications, resource allocation, and other economy-wide effects missing in existing work on targeting policies. The paper describes the model in great detail by giving examples of its application, first by analyzing the tax incidence in Cote d'Ivoire, and second by evaluating the anti-poverty programs. The authors draw conclusions from the model and plot a path for the future.
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