Macro/Micro-Economic Modelling and Gini Multi-Decomposition: An Application to the Philippines

Stéphane Mussard and Luc Savard

Journal of Income Distribution, 2010, vol. 19, issue 2, 51-78

Abstract: Macro/micro-economic modelling has emerged as a rigorous instrument to link policy reforms with changes in income distribution. Indeed, this approach enables one to capture directly the general equilibrium effect of policy reforms upon changes in household welfare. These endogenous distributions combined with the Gini multi-decomposition provide powerful and detailed information for policy-makers interested in the trade-off between inequality and the efficient impact of reforms. Our results show that including the general equilibrium effect can yield results that differ from those of partial equilibrium analysis.

Keywords: Gini; micro-simulation; multi-decomposition; Philippines (search for similar items in EconPapers)
JEL-codes: D31 D63 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (5)

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