Sequential linking of Computable General Equilibrium and microsimulation models: a comparison of behavioural and reweighting techniques
Several approaches have recently been developed to combine a computable general equilibrium model (CGE) and a microsimulation (MS) model. These so-called CGE-MS models enjoy a growing interest because they build a bridge between macro- and microeconomic analyses. This paper focuses on the „top-down? approach. In this context, the CGE model is used to simulate the changes at the macroeconomic level after the policy change, which are then passed on to the MS model. The aim of this paper is to compare the „top-down? approach introduced by Bourguignon et al. (2003) based on a behavioural MS model with an alternative and simpler approach making use of a non-behavioural MS model in combination with a reweighting procedure. Both approaches are presented and applications are provided using South African data. We compare the results obtained with both approaches for a typical simulation of the impact of trade liberalisation on income distribution. The reweighting approach introduces a small bias in the results, however without modifying the main conclusions. This is an indication that, given its relative simplicity compared to the behavioural approach, the reweighting approach can constitute a good alternative when data or time constraints do not allow the use of the behavioural approach and when the interest does not lie in the production of individual-level transition matrices.
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.:
- François Bourguignon & Anne-Sophie Robilliard & Sherman Robinson, 2003.
"Representative versus real households in the macro-economic modeling of inequality,"
DELTA Working Papers
2003-05, DELTA (Ecole normale supérieure).
- Sherman, Robinson & Robilliard, Anne-Sophie & Bourguignon, François, 2005. "Representative versus real households in the macro-economic modelling of inequality," Economics Papers from University Paris Dauphine 123456789/4535, Paris Dauphine University.
- 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 et Mondialisation).
- Lixin Cai & John Creedy & Guyonne Kalb, 2006.
"Accounting For Population Ageing In Tax Microsimulation Modelling By Survey Reweighting ,"
Australian Economic Papers,
Wiley Blackwell, vol. 45(1), pages 18-37, 03.
- Lixin Cai & John Creedy & Guyonne Kalb, 2005. "Accounting for Population Ageing in Tax Microsimulation Modelling by Survey Reweighting," Department of Economics - Working Papers Series 935, The University of Melbourne.
- Lixin Cai & John Creedy & Guyonne Kalb, 2004. "Accounting for Population Ageing in Tax Microsimulation Modelling by Survey Reweighting," Melbourne Institute Working Paper Series wp2004n26, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Nicolas Herault, 2007. "Trade Liberalisation, Poverty and Inequality in South Africa: A Computable General Equilibrium-Microsimulation Analysis," The Economic Record, The Economic Society of Australia, vol. 83(262), pages 317-328, 09.
- Maurizio Bussolo & Jann Lay, 2003.
"Globalisation and Poverty Changes in Colombia,"
OECD Development Centre Working Papers
226, OECD Publishing.
- Filho, Joaquim Bento de Souza Ferreira & Horridge, Mark, 2005. "The Doha Round, poverty, and regional inequality in Brazil," Policy Research Working Paper Series 3701, The World Bank.
- Bussolo, Maurizio & Lay, Jann & van der Mensbrugghe, Dominique, 2006. "Structural change and poverty reduction in Brazil : the impact of the Doha Round," Policy Research Working Paper Series 3833, The World Bank.
- 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.
- Jean-Yves Duclos & Luc Savard, 2004. "Introduction," Revue d’économie du développement, De Boeck Université, vol. 12(2), pages 5-8.
When requesting a correction, please mention this item's handle: RePEc:ijm:journl:v:3:y:2010:i:1:p:35-42. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gijs Dekkers)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.