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Micro-econometric and Micro-Macro Linked Models: Sequential Macro-Micro Modelling with Behavioral Microsimulations

In: Development Policies and Policy Processes in Africa

Author

Listed:
  • Jann Lay

    (GIGA German Institute of Global and Area Studies)

Abstract

Analyzing the poverty and distributional impact of macro events requires understanding how shocks or policy changes on the macro level affect household income and consumption. It is clear that this poses a formidable task, which of course raises the question of the appropriate methodology to address such questions. This paper presents one possible approach: A sequential methodology that combines a macroeconomic model with a behavioral micro-simulation. We discuss the merits and shortcomings of this approach with a focus on developing country applications with a short to medium run time horizon.

Suggested Citation

  • Jann Lay, 2018. "Micro-econometric and Micro-Macro Linked Models: Sequential Macro-Micro Modelling with Behavioral Microsimulations," Advances in African Economic, Social and Political Development, in: Christian Henning & Ousmane Badiane & Eva Krampe (ed.), Development Policies and Policy Processes in Africa, pages 117-136, Springer.
    • Handle: RePEc:spr:aaechp:978-3-319-60714-6_6
    DOI: 10.1007/978-3-319-60714-6_6
    as

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