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Simulating the poverty impact of macroeconomic shocks and policies

Author: Boniface Essama-Nssah; World Bank.
Publisher: [Washington, D.C] : World Bank, 2005.
Series: Policy research working paper, 3788; World Bank E-Library Archive
Edition/Format:   Computer file : EnglishView all editions and formats
Summary:
"Developing countries face a host of macroeconomic challenges in the design and implementation of development strategies and policies. The importance of the underlying poverty and distributional issues creates a need for relevant and reliable ways of tracking the social impact of shocks and policies. This paper describes and demonstrates the use of a stylized framework for simulating the poverty implications of the  Read more...
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Details

Material Type: Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Boniface Essama-Nssah; World Bank.
OCLC Number: 874233859
Notes: Erscheinungsjahr in Vorlageform:[2005].
Description: 1 online resource.
Series Title: Policy research working paper, 3788; World Bank E-Library Archive
Responsibility: B. Essama-Nssah.

Abstract:

"Developing countries face a host of macroeconomic challenges in the design and implementation of development strategies and policies. The importance of the underlying poverty and distributional issues creates a need for relevant and reliable ways of tracking the social impact of shocks and policies. This paper describes and demonstrates the use of a stylized framework for simulating the poverty implications of the Dutch disease, a change in the terms of trade and budgetary policy. The basic approach is to embed a Lorenz model of the size distribution of economic welfare in a general equilibrium model of an open economy. It is observed that, while aggregate welfare and poverty effects may be negligible, the structural and distributional impacts tend to be significant. The latter drive the political economy of policymaking and point to the need for an analytical framework that accounts for both the structural richness of the economy and the heterogeneity of the stakeholders "--World Bank web site.

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