Income Distribution in Computable General Equilibrium Modeling

François Bourguignon and Maurizio Bussolo

Chapter Chapter 21 in Handbook of Computable General Equilibrium Modeling, 2013, vol. 1, pp 1383-1437 from Elsevier

Abstract: Studying the poverty and income distribution effects of macroeconomic policies or shocks requires a methodology that accounts on the one hand for the nature of the policy or shock being studied and their aggregate impact on the economy and, on the other hand, the heterogeneity of their overall effects among individuals or households at the micro level. Standard evaluation methods are of little use here. Methods based on the comparison between individuals exposed and not exposed to the policy or shock are clearly not applicable since, by definition, all individuals are affected by any policy with some macroeconomic dimension. The evaluation methodology thus needs to rely not only on a micro but also on a macro counterfactual within some kind of general equilibrium setting.

Keywords: CGE; macro-micro models; static and dynamic microsimulation; inequality; income distribution (search for similar items in EconPapers)
JEL-codes: C15 C54 C68 D33 D58 I30 O15 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (35)

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Working Paper: Income Distribution in Computable General Equilibrium Modeling (2013)
Working Paper: Income Distribution in Computable General Equilibrium Modeling (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:hacchp:v:1:y:2013:i:c:p:1383-1437

DOI: 10.1016/B978-0-444-59568-3.00021-3

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