A Top-Down with Behaviour (TDB) Microsimulation Toolkit for Distributive Analysis

Luca Tiberti, Martín Cicowiez and John Cockburn

International Journal of Microsimulation, 2018, vol. 11, issue 2, 191-213

Abstract: Computable General Equilibrium (CGE) models are often combined with microsimulation (MS) models to perform distributive impact analysis for fiscal or structural policies, or external shocks. This paper describes a user-friendly Stata-based toolkit to perform MSs combined with CGE models in a top-down fashion. The toolkit is organized in various modules, which can be easily adapted to the users’ needs. It first estimates income generation by type of work and skill of workers. Then it estimates households’ specific price deflators based on individual utility. The changes estimated by a CGE model (or from other sources) in the employment (by skill and sector), in the wage payroll (by skill), in the revenues from self-employment activities (by skill) as well as in the commodities prices are fed into the MS model in a consistent way. Once the new vector of real consumption or revenue is estimated, it performs a series of distributive analysis, such as the computation of standard poverty and inequality indices, their decomposition by income

Keywords: CGE-MICROSIMULATION MODEL; POVERTY AND DISTRIBUTIVE ANALYSIS; UGANDA (search for similar items in EconPapers)
JEL-codes: C50 D58 I32 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ijm:journl:v11:y:2018:i:2:p:191-213

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