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Linking representative household models with household surveys for poverty analysis : a comparison of alternative methodologies

  • Agenor, Pierre-Richard
  • Chen, Derek H.C.
  • Grimm, Michael

The authors compare three approaches to linking representative-household macro models with micro household income data in terms of their implications for measuring the poverty and distributional effects of policy shocks. These approaches are a simple micro-accounting method, an extension of that method to account for changes in employment structure, and the Beta distribution approach. Even though in the authors simulation exercises the three methods do not lead to fundamentally different results in absolute terms, they show that potential differences in the measurement of distributional and poverty effects of policy shocks can be very large.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3343.

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Date of creation: 01 Jun 2004
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Handle: RePEc:wbk:wbrwps:3343
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  1. Decaluwé, Bernard & Dumont, Jean-Christophe & Savard, Luc, 2000. "Measuring Poverty and Inequality in a Computable General Equilibrium Model," Cahiers de recherche 9926, Université Laval - Département d'économique.
  2. Grimm, Michael, 2004. "The Medium- and Long-term Effects of an Expansion of Education on Poverty in C.te d'Ivoire: A Dynamic Microsimulation Study," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. Sherman, Robinson & Robilliard, Anne-Sophie & Bourguignon, François, 2005. "Representative versus real households in the macro-economic modelling of inequality," Economics Papers from University Paris Dauphine 123456789/4535, Paris Dauphine University.
  4. Robilliard, Anne-Sophie & Robinson, Sherman, 1999. "Reconciling household surveys and national accounts data using a cross entropy estimation method:," TMD discussion papers 50, International Food Policy Research Institute (IFPRI).
  5. Cogneau, Denis & Robilliard, Anne-Sophie, 2001. "Croissance, distribution et pauvreté : un modèle de microsimulation en équilibre général appliqué à Madagascar," Economics Papers from University Paris Dauphine 123456789/4583, Paris Dauphine University.
  6. Joachim Merz, 1994. "Microdata Adjustment by the Minimum Information Loss Principle," FFB-Discussionpaper 10, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  7. Dorothée Boccanfuso & Bernard Decaluwé & Luc Savard, 2003. "Poverty, Income Distribution and CGE Modeling: Does the Functional Form of Distribution Matter?," Cahiers de recherche 0332, CIRPEE.
  8. AGENOR Pierre-Richard & IZQUIERDO Alejandro & FOFACK Hippolyte, . "IMMPA: A Quantitative Macroeconomic Framework for the Analysis of Poverty Reduction Strategies," EcoMod2003 330700003, EcoMod.
  9. Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Cahiers de recherche 9909, Université Laval - Département d'économique.
  10. John Cockburn, 2002. "Trade Liberalisation and Poverty in Nepal: A Computable General Equilibrium Micro Simulation Analysis," CSAE Working Paper Series 2002-11, Centre for the Study of African Economies, University of Oxford.
  11. Denis Cogneau & Michael Grimm, 2002. "AIDS and Income Distribution in Africa; A Micro-simulation Study for Côte d'Ivoire," Working Papers DT/2002/15, DIAL (Développement, Institutions et Mondialisation).
  12. Cogneau, Denis, 2001. "Formation du revenu, segmentation et discrimination sur le marché du travail d’une ville en développement : Antananarivo fin de siècle," Economics Papers from University Paris Dauphine 123456789/4584, Paris Dauphine University.
  13. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  14. AGENOR Pierre-Richard & FERNANDES Reynaldo & HADDAD Eduardo & VAN DER MENSBRUGGHE Dominique, . "Analyzing the Impact of Adjustment Policies on the Poor: An IMMPA Framework for Brazil," EcoMod2003 330700002, EcoMod.
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