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Micro-simulation and Multi-decomposition: A Case Study: Philippines

Luc Savard and Stéphane Mussard

Cahiers de recherche from Departement d'économique de l'École de gestion à l'Université de Sherbrooke

Abstract: This article combines computable general equilibrium (CGE) micro-simulation modeling and the Gini multi-decomposition analysis. The CGE-micro-simulation approach enables one to generate endogenous income distributions following government policy interventions. The introduction of these endogenous distributions into the Gini multi-decomposition, that merges income source and subgroup decompositions, provides powerful information to decision makers, which analyze the trade-off between inequality and efficiency whereas Gini multi-decomposition is usually applied in a partial equilibrium context. This is done by imposing the assumption that either the income or the price effects are exogenous.

Keywords: Micro-simulation; Multi-decomposition; Philippines. (search for similar items in EconPapers)
JEL-codes: D31 D63 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2005
New Economics Papers: this item is included in nep-cmp and nep-sea
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http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0502.pdf First version, 2005 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:shr:wpaper:05-02

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