Linking Representative Household Models with Household Surveys for Poverty Analysis: A Comparison of Alternative Methodologies

48 Pages Posted: 20 Apr 2016

See all articles by Pierre-Richard Agenor

Pierre-Richard Agenor

University of Manchester - School of Social Sciences

Derek H.C. Chen

World Bank

Michael Grimm

Erasmus University Rotterdam; University of Passau; IZA; DIW Berlin

Date Written: June 15, 2004

Abstract

Agenor, Chen, and Grimm compare three approaches to linking macroeconomic models with representative households in terms of their implications for measuring the poverty and distributional effects of poverty reduction strategies. These approaches are a simple micro-accounting method, an extension of that method to account for changes in employment structure, and the Beta distribution approach. Even though in their simulation exercises the three methods do not lead to fundamentally different results in absolute terms, the authors show that potential differences in the measurement of distributional and poverty effects of policy shocks can be very large.

This paper - a product of the Global Knowledge and Learning Division, World Bank Institute - is part of a larger effort in the institute to evaluate poverty and the distributional effects of poverty reduction strategies.

Keywords: Applied general equilibrium models, poverty, income distribution, policy evaluation

JEL Classification: C68, D31, D58, I32, O11

Suggested Citation

Agenor, Pierre-Richard and Chen, Derek H.C. and Grimm, Michael, Linking Representative Household Models with Household Surveys for Poverty Analysis: A Comparison of Alternative Methodologies (June 15, 2004). World Bank Policy Research Working Paper No. 3343. Available at SSRN: https://ssrn.com/abstract=610387

Pierre-Richard Agenor

University of Manchester - School of Social Sciences ( email )

Oxford Road
Manchester, M13 9PL
United Kingdom

Derek H.C. Chen (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202-458-1602 (Phone)
202-522-1492 (Fax)

Michael Grimm

Erasmus University Rotterdam ( email )

Kortenaerkade 12
P.O. Box 29776
The Hague, 2502LT
Netherlands

HOME PAGE: http://www.iss.nl

University of Passau ( email )

Innstrasse 29
Passau, 94032
Germany

HOME PAGE: http://www.wiwi.uni-passau.de/grimm.html

IZA ( email )

P.O. Box 7240
Bonn, D-53072
Germany

DIW Berlin ( email )

Mohrenstra├če 58
Berlin, 10117
Germany

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