Macro Models and Household Survey Data: Linkages for Poverty and Distributional Analysis

33 Pages Posted: 6 Apr 2005

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

Abstract

This paper focuses on approaches to linking macroeconomic models to household income data for poverty and distributional analysis. Given that linkage methods can influence the resulting poverty and income distribution effects, understanding the benefits and costs of various linkages is important. Simulation exercises do not show fundamentally different results when comparing three approaches: a simple micro-accounting method, an extension of that method to account for changes in employment structure, and the Beta distribution approach. However, potential differences can be very large. We also highlight the extended micro-accounting method as a practical approach to linking macroeconomic models to household income data.

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, Macro Models and Household Survey Data: Linkages for Poverty and Distributional Analysis. Available at SSRN: https://ssrn.com/abstract=695961 or http://dx.doi.org/10.2139/ssrn.695961

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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