sector. If the macroeconomic and microeconomic data required for such an approach are available and reasonably accurate, the parameters of the model are empirically estimated from the available data, and the functional forms of the behavioural relationships in the model are broadly correct, then such models can provide useful ex-ante predictions of the impact of price shocks upon different types of households and thereby upon poverty. Furthermore, even where these conditions are not completly satisfied, CGE models can provide a valuable indication of the sorts of effects which we might expect _given_ any set of assumptions about data, parameters and behavioural relationships and thereby give an indication of how sensitive the results are to particular sets of assumptions.

CGE models have now been used to examine the impact of a variety of price reforms (including trade, marketing and shifts in agricultural technology) in a large number of different countries.<sup>4</sup> However, the data requirements for such models can be considerable. Unless a recent Social Account Matrix (SAM) is already available, the construction of a useable SAM can take substantial time and expertise. Furthermore, the econometric estimation of behavioural parameters (as opposed to merely calibrating such parameters against the original SAM) can be complex and time-consuming and the choice of functional form for the behavioural relationships, although based upon plausible arguments, is essentially arbitrary (Deaton, 1997).

To reduce the data and resource requirements, many analysts have used simpler partial equilibrium techniques which can be implemented more quickly on readily available data. Such analysis has typically involved detailed microeconometric work on household survey datasets. This can yield information about the pattern of consumption and how it varies across different groups (e.g. deciles, gender of household head, type of main activity, region etc). In addition surveys sometimes have income information which can tell us the relative importance of different sources of income again disaggregated by different groups. Such work can provide a rich picture of the poverty profile of any given country and an initial indication of the likely impact of reforms.

This paper describes a simple practical methodology for estimating the poverty impact of price reforms which can be implemented in a reasonably short period of time using almost universally available household survey data. This methodology is not new, but by providing a comprehensive description of the methodology in one paper, we hope that it will become a standard "minimum" analysis of the potential impact of such reforms upon the poor. We provide some examples of the application of the methodology from the Diagnostic Trade Integration Studies conducted as part of the Integrated Framework program<sup>5</sup> to assist Least Developed Countries with integration into the world economy.

> 4 For example, IFPRI's Trade and Macroeconomic division http://www.ifpri.orEI has conducted numerous studies of this kind.

> **5** The Integrated Framework (IF) was set up by the WTO Ministerial meeting in Singapore in 1996 to help integrate LDCs into the world economy. The work programme includes the preparation of country specific Diagnostic Trade Integration Studies some of which include chapters on the linkage between trade and poverty (hilp://www.inte-ratedfraniework.org/) provides more information on the Integrated Framework. DTIS studies for Cambodia, Madagascar and Mauritania are available from

> http://if.wto.org/documents e.btm; draft DTIS studies exist for Yemen, Senegal, Malawi and Lesotho.

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