Micro-simulation and Multi-decomposition. A Case Study: Philippines.

Type Working Paper - Cahier de recherche / Working Paper
Title Micro-simulation and Multi-decomposition. A Case Study: Philippines.
Author(s)
Publication (Day/Month/Year) 2005
URL http://www.researchgate.net/profile/Stephane_Mussard2/publication/24130328_Micro-simulation_and_Mult​i-decomposition_A_Case_Study_Philippines/links/0912f5098d831c10e0000000.pdf
Abstract
This article combines computable general equilibrium (CGE) micro-simulation modeling and the Gini multi-decomposition analysis. The CGE-micro-simulation approach enables one to generate endogenous income distributions following government policy interventions. The introduction of these endogenous distributions into the Gini multi-decomposition, that merges income source and subgroup decompositions, provides powerful information to decision makers, which analyze the trade-off between inequality and efficiency whereas Gini multi-decomposition is usually applied in a partial equilibrium context. This is done by imposing the assumption that either the income or the price effects are exogenous.

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