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Macro-Micro Models

Author

Listed:
  • John Cockburn

    () (Département d'économique, Université Laval)

  • Luc Savard

    () (Département d'économique, Université de Sherbrooke)

  • Luca Tiberti

    () (Département d'économique, Université Laval)

Abstract

In this paper we review the joint macro-micro modeling framework. In the last twenty years, analysts have increasingly used computable general equilibrium (CGE) models jointly with microsimulation (MS) models to perform efficiency and distributive impact analysis. CGE models focus on macro and sectoral impact of policy reforms and they also capture general equilibrium effects of simulations. MS models focus on households of individuals’ behavior and are a key tool for distributional impact analysis. We detail the different approaches used and highlighting their advantages and disadvantages. We review the representative agent, the fully integrated, the top-down, bottom-up and iterative approaches.

Suggested Citation

  • John Cockburn & Luc Savard & Luca Tiberti, 2015. "Macro-Micro Models," Cahiers de recherche 15-08, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
  • Handle: RePEc:shr:wpaper:15-08
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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-1508.pdf
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    Cited by:

    1. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2009. "Electricity Reforms In Mali: A Macro-Micro Analysis Of The Effects On Poverty And Distribution," South African Journal of Economics, Economic Society of South Africa, vol. 77(1), pages 127-147, March.
    2. Abeer Elshennawy & Dirk Willenbockel, 2014. "Trade Liberalization and the Costs and Benefits of Informality an Intertemporal General Equilibrium Model for Egypt," Working Papers 888, Economic Research Forum, revised Dec 2014.
    3. Isabel Teichmann, 2016. "CGE-Based Methods to Measure the Impact of Trade Liberalization on Poverty," DIW Roundup: Politik im Fokus 100, DIW Berlin, German Institute for Economic Research.
    4. Salvador Barrios & Mathias Dolls & Anamaria Maftei & Andreas Peichl & Sara Riscado & Janos Varga & Christian Wittneben, 2016. "Dynamic scoring of tax reforms in the European Union," JRC Working Papers on Taxation & Structural Reforms 2016-03, Joint Research Centre (Seville site).
    5. Maheshwar Rao & Robert Tanton & Yogi Vidyattama, 2013. "‘A Systems Approach to Analyse the Impacts of Water Policy Reform in the Murray-Darling Basin: a conceptual and an analytical framework’," NATSEM Working Paper Series 13/22, University of Canberra, National Centre for Social and Economic Modelling.
    6. repec:taf:rjapxx:v:21:y:2016:i:4:p:549-570 is not listed on IDEAS
    7. Edward, Batte Sennoga & John Mary, Matovu, 2016. "Growth and Welfare Effects of Macroeconomic Shocks in Uganda," Occasional Papers 244096, Economic Policy Research Centre (EPRC).
    8. Dorothée Boccanfuso & Luc Savard & Antonio Estache, 2013. "The Distributional Impact of Developed Countries’ Climate Change Policies on Senegal: A Macro-Micro CGE Application," Sustainability, MDPI, Open Access Journal, vol. 5(6), pages 1-24, June.
    9. Ajwad, Mohamed Ihsan & Haimovich, Francisco & Azam, Mehtabul, 2012. "Simulating the impact of the 2009 financial crisis on welfare in Latvia," Policy Research Working Paper Series 5960, The World Bank.
    10. Dorothée Boccanfuso & Luc Savard, 2011. "The Food Crisis and its Impacts on Poverty in Senegal and Mali: Crossed Destinies," Development Policy Review, Overseas Development Institute, vol. 29(2), pages 211-247, March.
    11. Boccanfuso, Dorothee & Coulibaly, Massa & Timilsina, Govinda R. & Savard, Luc, 2013. "Macroeconomic and distributional impacts of jatropha-based biodiesel in Mali," Policy Research Working Paper Series 6500, The World Bank.
    12. Verikios, George & Zhang, Xiao-guang, 2015. "Reform of Australian urban transport: A CGE-microsimulation analysis of the effects on income distribution," Economic Modelling, Elsevier, vol. 44(C), pages 7-17.
    13. Dorothée Boccanfuso & Céline de Quatrebarbes & Luc Savard, 2011. "Can the removal of VAT Exemptions support the Poor? The Case of Niger," Cahiers de recherche 11-04, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke, revised 05 Dec 2015.
    14. Samir Cury & Euclides Pedrozo, 2016. "Cash Transfer Policies, Taxation and the Fall in Inequality in Brazil An Integrated Microsimulation-CGE Analysis
      [equilibrium model, microsimulation model, Brazil. Classification-JEL: C68, D58, I38
      ," International Journal of Microsimulation, International Microsimulation Association, vol. 9(1), pages 55-85.
    15. Ahmed,Syud Amer & Baris,Enis & Go,Delfin Sia & Lofgren,Hans & Osorio-Rodarte,Israel & Thierfelder,Karen E., 2017. "Assessing the global economic and poverty effects of antimicrobial resistance," Policy Research Working Paper Series 8133, The World Bank.
    16. Maurizio Bussolo & Rafael E De Hoyos & Denis Medvedev, 2010. "Economic growth and income distribution: linking macro-economic models with household survey data at the global level," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 92-103.
    17. George Verikios & Xiao-guang Zhang, 2016. "Structural change and income distribution: the case of Australian telecommunications," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 21(4), pages 549-570, October.
    18. Dorothée BOCCANFUSO & Massa COULABY & Govinda R TIMILSINA & Luc SAVARD, "undated". "Economic and Distributional Impact of Bio-Fuels in Mali," EcoMod2010 259600032, EcoMod.
    19. Peichl, Andreas, 2009. "Benefits and problems of linking micro and macro models - evidence from a flat tax analysis," ISER Working Paper Series 2009-02, Institute for Social and Economic Research.
    20. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2007. "Electricity Reforms in Senegal: A Macro–Micro Analysis of the Effects on Poverty and Distribution," Cahiers de recherche 07-12, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    21. James B Davies, 2009. "Combining microsimulation with CGE and macro modelling for distributional analysis in developing and transition countries," International Journal of Microsimulation, International Microsimulation Association, vol. 2(1), pages 49-56.
    22. Colombo, Giulia, 2008. "Linking CGE and Microsimulation Models: A Comparison of Different Approaches," ZEW Discussion Papers 08-054, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    23. Dennis Fredriksen & Erling Holmøy & Birger Strøm & Nils Martin Stølen, 2015. "Fiscal effects of the Norwegian pension reform. A micro-macro assessment," Discussion Papers 821, Statistics Norway, Research Department.

    More about this item

    Keywords

    CGE model; microsimulation model; distributional impact analysis; poverty analysis;

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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