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Quantitative Impacts Of Basic Income Grant On Income Distribution In Cote D’Ivoire: Time To Change Our Societies

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  • AKA, Bedia François

Abstract

This paper tries to engage the economic and political debate around the proposition of a basic income grant (BIG) in Côte d’Ivoire. We simulate the economic wide and distributional impact of a universal basic income grant (BIG) in Cote d’Ivoire. How the BIG is financed is investigated. We use a microsimulated computable general equilibrium (CGE) model to analyze the effects of a universal basic income grant on the economy and on households. The model is performed using a Côte d’Ivoire’s 2003 social accounting matrix (SAM) based on the 1998 household survey composed of 4,200 households, and 2003 national accounts data. The paper uses a value added tax (VAT) financing approach to provide a reasonable feasible scenario, as we are all consumers. The results suggest that the macroeconomic impacts of the basic income grant are a powerful social protection tool in fighting poverty and inequality towards a welfare state.

Suggested Citation

  • AKA, Bedia François, 2016. "Quantitative Impacts Of Basic Income Grant On Income Distribution In Cote D’Ivoire: Time To Change Our Societies," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 25(1), pages 159-170.
    • Handle: RePEc:sdo:regaec:v:25:y:2016:i:1_12
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    1. AKA, Bedia F. & GUISAN, Maria-Carmen, 2017. "Cutting Poverty Rate Using Basic Income Grant And International Cooperation In Cote D’Ivoire And Other Western Africa Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(1), pages 101-112.

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    More about this item

    Keywords

    Basic income; Fiscal policy; Poverty; Inequality; Welfare; Micro-simulated CGE.;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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