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Linking Representative Household Models with Household Surveys for Poverty Analysis A Comparison of Alternative Methodologies

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Author Info
Pierre-Richard Agénor (Yale University)
Derek Chen (World Bank, Washington D.C.)
Michael Grimm (University of Göttingen)

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Abstract

We compare three approaches to linking macro models with representative households and micro household income data in terms of their implications for measuring the poverty and distributional effects of poverty reduction strategies. 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 our simulation exercises the three methods do not lead to fundamentally different results in absolute terms, we show that potential differences in the measurement of distributional and poverty effects of policy shocks can be very large.

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Paper provided by EconWPA in its series Development and Comp Systems with number 0405006.

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Length: 49 pages
Date of creation: 06 May 2004
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Handle: RePEc:wpa:wuwpdc:0405006

Note: Type of Document - pdf; pages: 49. 49 pages, pdf
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Keywords: Applied General Equilibrium Models Poverty Income Distribution Policy Evaluation

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O - Economic Development, Technological Change, and Growth
P - Economic Systems

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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 DT/2001/18, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
  2. Dorothée Boccanfuso & Bernard Decaluwé & Luc Savard, 2003. "Poverty, Income Distribution and CGE Modeling: Does the Functional Form of Distribution Matter?," Cahiers de recherche 0332, CIRPEE. [Downloadable!]
  3. Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Papers 9909, Laval - Recherche en Politique Economique.
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  4. Denis Cogneau & Anne-Sophie Robilliard, 2001. "Croissance, distribution et pauvreté : un modèle de micro simulation en équilibre général appliqué à Madagascar," Working Papers DT/2001/19, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
  5. John Cockburn, 2004. "Trade Liberalisation and Poverty in Nepal A Computable General Equilibrium Micro Simulation Analysis," Development and Comp Systems 0409012, EconWPA. [Downloadable!]
  6. Anne-Sophie Robilliard & Sherman Robinson, 2003. "Reconciling Household Surveys and National Accounts Data Using a Cross Entropy Estimation Method," Review of Income and Wealth, Blackwell Publishing, vol. 49(3), pages 395-406, 09. [Downloadable!] (restricted)
  7. François Bourguignon & Anne-Sophie Robilliard & Sherman Robinson, 2003. "Representative versus real households in the macro-economic modeling of inequality," Working Papers DT/2003/10, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
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  8. Merz, Joachim, 1994. "Microdata Adjustment by the Minimum Information Loss Principle," MPRA Paper 7231, University Library of Munich, Germany. [Downloadable!]
  9. Michael Grimm, 2002. "The medium and long term effects of an expansion of education on poverty in Côte d'Ivoire. A dynamic microsimulation study," Working Papers DT/2002/12, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
  10. Decaluwé, Bernard & Dumont, Jean-Christophe & Savard, Luc, 2000. "Measuring Poverty and Inequality in a Computable General Equilibrium Model," Cahiers de recherche 9926, Université Laval - Département d'économique. [Downloadable!]
  11. Denis Cogneau & Michael Grimm, 2002. "AIDS and Income Distribution in Africa; A Micro-simulation Study for Côte d'Ivoire," Working Papers DT/2002/15, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
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  12. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Thurlow, James & Wobst, Peter, 2004. "The road to pro-poor growth in Zambia," DSGD discussion papers 16, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. 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. [Downloadable!]
  3. Agenor, Pierre-Richard, 2004. "Unemployment - poverty trade-offs," Policy Research Working Paper Series 3297, The World Bank. [Downloadable!]
  4. 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," Cahiers de recherche MPIA 2006-07, PEP-MPIA. [Downloadable!]
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