Building and Linking a Microsimulation Model to a CGE Model for South Africa
South African Journal of Economics Vol. 74, No. 1, March 2006
Posted: 4 Dec 2007
This paper examines the microeconomic effects of macroeconomic policies or shocks in South Africa. In particular, the paper considers the effects of macroeconomic policies on poverty and inequality by building and linking a microsimulation (MS) model to a Computable General Equilibrium (CGE) model. In the South African context, where poverty and inequality are at high levels, this novel approach enables us to identify the winners and losers of any policy change, so that the impact on poverty and inequality can be assessed in detail.
Keywords: Computable General Equilibrium model, microsimulation, income distribution, poverty, South Africa
JEL Classification: D33, D58, I32, O55
Suggested Citation: Suggested Citation