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Income Distribution, Poverty Measures and Trade Shocks: A Computable General Equilibrium Model of a Archetype Developing Country

Author

Listed:
  • Decaluwe, B.
  • Patry, A.
  • Savard, L.

Abstract

In this paper we use a computable general equilibrium model to study the impact of a trade shock and a tariff reform on household poverty for an archetype developing country. Unlike other studies, we present the income distribution of each household group as a Beta statistical distribution. Also, the income distributions are endogenous in this model. Following a change in the mean income, the income distribution will shift proportionally by the same variation. In contrast of other study, this paper presents the poverty lines as being endogenous. With this specification, the poverty line will change following a variation in relative prices.

Suggested Citation

  • Decaluwe, B. & Patry, A. & Savard, L., 1998. "Income Distribution, Poverty Measures and Trade Shocks: A Computable General Equilibrium Model of a Archetype Developing Country," Papers 9812, Laval - Recherche en Politique Economique.
    • Handle: RePEc:fth:lavape:9812
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    Cited by:

    1. Claudio R. Kart E., 2004. "How Can Tax Policies and Macroeconomic Shocks Affect the Poor? A Quantitative Assessment Using a Computable General Equilibrium Framework for Colombia," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 22(46-2), pages 450-519, December.
    2. Sèna Kimm Gnangnon, 2021. "Exchange rate pressure, fiscal redistribution and poverty in developing countries," Economic Change and Restructuring, Springer, vol. 54(4), pages 1173-1203, November.
    3. El Moussaoui Mohamed & Mohamed Karim, 2017. "The Impact of the Fiscal Policy on Income and the Consumption of the Poor Households in Morocco: An Analysis with a Computable General Equilibrium Model (CGEM)," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(4), pages 79-89, April.
    4. Jean-Marc Montaud, 2003. "Dotations en capital et pauvreté des ménages au Burkina Faso : une approche en Equilibre Général Calculable," Post-Print hal-01885321, HAL.
    5. Naranpanawa, Athula & Bandara, Jayatilleke S. & Selvanathan, Saroja, 2011. "Trade and poverty nexus: A case study of Sri Lanka," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 328-346, March.
    6. Claudio R. Kart E., 2004. "How Can Tax Policies and Macroeconomic Shocks Affect the Poor? A Quantitative Assessment Using a Computable General Equilibrium Framework for Colombia," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República.
    7. Jean-Marc Montaud, 2003. "Dotations en capital et pauvreté des ménages au Burkina Faso : une analyse en Équilibre Général Calculable," Revue d’économie du développement, De Boeck Université, vol. 11(1), pages 43-71.

    More about this item

    Keywords

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    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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