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Title:Microsimulation, CGE and macro modelling for transition and developing economies PDF Logo
Authors:Davis, James B.
Issue Date:2004
Series/Report no.:WIDER Discussion Papers // World Institute for Development Economics (UNU-WIDER) 2004/08
Abstract:Alternative approaches to modelling distributional and welfare effects of changes in policy and the economic environment in developing and transition countries are surveyed. Microsimulations range from pure accounting approaches to models with behavioural equations based on econometric estimates and various dynamic models. Microsimulation accounting models are key to analysing the impact effects of tax and benefit changes and are becoming widespread. Computable general equilibrium (CGE) modelling endogenizes price changes and changes in industry and labour market structure. An essential CGE input is a social accounting matrix (SAM), which can be used to do simple multiplier analyses. A wide range of macroeconomic models have also been used in developing countries, endogenizing variables like interest rates and exchange rates.
computable general equilibrium
Document Type:Working Paper
Appears in Collections:WIDER Discussion Papers, United Nations University (UNU)

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