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The Distributional Impact of Macroeconomic Shocks in Mexico: Threshold Effects in a Multi-Region CGE Model

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  • Harris, Rebecca Lee

Abstract

This paper presents a regionally disaggregated computable general equilibrium (CGE) model of Mexico in order to examine the differential effects of external shocks across the regions. The model demonstrates how the internal migration regime is affected by exogenous changes in the presence of threshold effects, in which an exogenous change may not effect regional behavior until the shocks are large enough to overcome the isolation of local markets. The results show that migration helps mitigate the income changes caused by the simulations.

Suggested Citation

  • Harris, Rebecca Lee, 1999. "The Distributional Impact of Macroeconomic Shocks in Mexico: Threshold Effects in a Multi-Region CGE Model," TMD Discussion Papers 97535, CGIAR, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:ags:iffp23:97535
    DOI: 10.22004/ag.econ.97535
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    References listed on IDEAS

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    1. Richard C. Jones, 1998. "Remittances and Inequality: A Question of Migration Stage and Geographic Scale," Economic Geography, Taylor & Francis Journals, vol. 74(1), pages 8-25, January.
    2. repec:sae:mrxval:v:29:y:1995:i:2:p:395-440 is not listed on IDEAS
    3. Lofgren, Hans & Robinson, Sherman, 1999. "Spatial networks in multi-region computable general equilibrium models," TMD discussion papers 35, International Food Policy Research Institute (IFPRI).
    4. Lofgren, Hans & Robinson, Sherman, 1999. "Spatial networks in multi-region computable general equilibrium models," TMD Discussion Papers 97555, CGIAR, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Coady, David P. & Harris, Rebecca Lee, 2001. "A Regional Equilibrium Analysis Of The Welfare Impact Of Cash Transfers: An Analysis Of Progresa In Mexico," TMD Discussion Papers 16303, CGIAR, International Food Policy Research Institute (IFPRI).

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