Distributional Effects of Adjustment Policies: Simulations for Two Archetype Economies
The 1980s was a period of external shocks for developing countries, and domestic macroeconomic imbalance and structural inefficiencies compounded the effects. But the performance of developing countries was not uniform. The authors devised a model for simulating the effects of terms of trade and interest rate shocks on two archetype economies, one representing an average Latin American economy, and the other an average African economy. The study examined the effects of the shocks and of different adjustment policies. Identical shocks and adjustment packages yield different outcomes for growth, poverty, and income distribution in the two economies. The simulations suggest three important conclusions : i) with the standard adjustment package, inequality increased significantly for the Latin American archetype but decreased significantly for the African archetype; ii) adjustment can lead to a sharp redistribution of income from groups with low marginal propensities to save towards groups with a high marginal propensity to save; and iii) trade and tax reforms that improve allocative efficiency by equalizing incentives across sectors can reduce inequality significantly, provided that governments are able to implement these revenue-neutral measures.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1990|
|Date of revision:|
|Publication status:||Published in The World Bank Economic Review, 1991, 5 (2), pp. 339-366|
|Contact details of provider:|| Postal: 48 boulevard Jourdan - 75014 Paris|
Phone: 01 43 13 63 00
Fax: 01 43 13 63 10
Web page: http://www.delta.ens.fr/
More information through EDIRC
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.:
- Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, vol. 7(4), pages 317-322, November.
- Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
When requesting a correction, please mention this item's handle: RePEc:del:abcdef:90-31. 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: ()
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.