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

Bernard Decaluwe (), A. Patry and Luc Savard ()

Working Papers from Laval - Recherche en Politique Economique

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.

Keywords: GENERAL EQUILIBRIUM MODEL; POVERTY; TRADE (search for similar items in EconPapers)
JEL-codes: D58 O15 I32 (search for similar items in EconPapers)
Date: 1998
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Working Paper: Income Distribution, Poverty Measures and Trade Shocks: A Computable General Equilibrium Model of a Archetype Developing Country (1998)
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Persistent link: http://EconPapers.repec.org/RePEc:fth:lavape:9812

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