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Macro Models and Poverty Analysis: Theoretical Tensions and Empirical Practice

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  • Sherman Robinson
  • Hans Lofgren

Abstract

This article reviews economy-wide, multisectoral models and the issues involved when using them to analyse macro-poverty linkages in developing countries. It explores the theoretical underpinnings for simple SAM multiplier models, real-economy CGE models, and real-financial CGE models. The latter represent an 'eclectic' approach, which strives to build models that integrate elements from CGE and macro-financial models, the alternative, more applied, 'ecumenical' approach being to keep these models separate but specify ways through which they can communicate. Due to limited knowledge about the data and processes, the ability of analysts to address short-run distributional issues is limited; we therefore expect most progress in the analysis of medium- and long-run issues, using both eclectic and ecumenical approaches. Copyright Overseas Development Institute, 2005.

Suggested Citation

  • Sherman Robinson & Hans Lofgren, 2005. "Macro Models and Poverty Analysis: Theoretical Tensions and Empirical Practice," Development Policy Review, Overseas Development Institute, vol. 23(3), pages 267-283, May.
  • Handle: RePEc:bla:devpol:v:23:y:2005:i:3:p:267-283
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    Citations

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    Cited by:

    1. Vaqar Ahmed & Cathal O'Donoghue, 2010. "External Shocks in a Small Open Economy: A CGE - Microsimulation Analysis," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 15(1), pages 45-90, Jan-Jun.
    2. 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.
    3. Essama-Nssah, B., 2005. "Simulating the poverty impact of macroeconomic shocks and policies," Policy Research Working Paper Series 3788, The World Bank.
    4. Osman, Rehab Osman Mohamed, 2012. "The EU Economic Partnership Agreements with Southern Africa: a computable general equilibrium analysis," Economics PhD Theses 0412, Department of Economics, University of Sussex.
    5. Koen Dillen & Emanuele Ferrari & Pascal Tillie & George Philippidis & Sophie Helaine, 2013. "Contribution to the economic impact assessment of policy options to regulate animal cloning for food production with an economic simulation model," JRC Working Papers JRC79995, Joint Research Centre (Seville site).
    6. AfDB AfDB, 2006. "Working Paper 86 - A Review of Ex - ante Poverty Impact Assessments of Macroeconomic Policies in Cameroon and Ghana," Working Paper Series 2300, African Development Bank.
    7. 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, January.
    8. Mahjabeen, Rubana, 2008. "Microfinancing in Bangladesh: Impact on households, consumption and welfare," Journal of Policy Modeling, Elsevier, vol. 30(6), pages 1083-1092.
    9. 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.
    10. AfDB AfDB, 2006. "Working Paper 86 - A Review of Ex - ante Poverty Impact Assessments of Macroeconomic Policies in Cameroon and Ghana," Working Paper Series 2220, African Development Bank.
    11. Das, Gouranga, 2010. "Globalization, socio-institutional factors and North–South knowledge diffusion: Role of India and China as Southern growth progenitors," MPRA Paper 37252, University Library of Munich, Germany, revised 01 Aug 2011.

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