Simulating the poverty impact of macroeconomic shocks and policies
By: B. Essama-Nssah.
Contributors: World Bank.
Series: Policy research working paper ;; 3788; Policy research working papers (Online) ;; 3788.
Publisher: World Bank
Published: 2005
Place of publication: [Washington, D.C
Language: eng
Format: Electronic resource
Subjects: Poverty -- Developing countries.; Business cycles -- Developing countries.; Developing countries -- Economic policy.
Description: "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.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 12/7/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.