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

The 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 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

The University of Manchester - School of Social Sciences ( email )

Oxford Road
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Derek H.C. Chen (Contact Author)

World Bank ( email )

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Michael Grimm

Erasmus University Rotterdam ( email )

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

University of Passau ( email )

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Germany

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

IZA ( email )

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DIW Berlin ( email )

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Berlin, 10117
Germany

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