2003
DOI: 10.1080/00220380412331322841
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The Welfare Effects of Balance of Payments Reform: A Micro-Macro Simulation of the Cost of Rent-Seeking

Abstract: This article proposes a methodology for analysing the effect of balance of payments liberalisation on measures of poverty and distribution and applies it to the case of Jamaica in the 1990s. The methodology consists of a macro-micro simulation in which a CGE model provides labour market outcomes, which in turn are used to manipulate the sectoral allocation of employment to generate the income distribution consistent with the new labour market outcome. In the application to Jamaica, we find that the reallocatio… Show more

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Cited by 11 publications
(4 citation statements)
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“…The first one, micro-accounting, is formally presented by Chen and Ravallion [27] and has been extensively applied in recent years (among early applications of this approach are [28,29]). The second one, proposed by Bourguignon et al [30], consists in integrating at an individual level, rich micro behaviour observed at a household level such as consumption or labor supply.…”
Section: Macro-micro Cge Model For Distributional Impact Analysismentioning
confidence: 99%
“…The first one, micro-accounting, is formally presented by Chen and Ravallion [27] and has been extensively applied in recent years (among early applications of this approach are [28,29]). The second one, proposed by Bourguignon et al [30], consists in integrating at an individual level, rich micro behaviour observed at a household level such as consumption or labor supply.…”
Section: Macro-micro Cge Model For Distributional Impact Analysismentioning
confidence: 99%
“…The first, micro-accounting, was formally presented by Chen and Ravallion (2004) and has been extensively applied in recent years 3 . The second variant, proposed by Bourguignon et al (2005), consists of integrating, at an individual level, rich micro behavior observed 3 Among early applications of this approach are Vos and De Jong (2003) and King and Handa (2003).…”
Section: The Modelmentioning
confidence: 99%
“…The first one being the integrated micro-simulation approach proposed by Decaluweé t al. (1999) and applied by Cogneau and Robilliard (2000), Gørtz et al (2000), Cockburn (2001), Cororaton (2004), Chittiga et al (2005) and Boccanfuso et al (2005) among others, and the sequential or top-down approach applied by Vos and De Jong (2003), King and Handa (2003), Lo¨fgren et al (2003), Lay et al (2004), Chen and Ravallion (2004) and Bourguignon et al (2005). The first approach is theoretically the soundest approach as it takes into account the feedback effects of household micro-behavior, but it poses problems in terms of numerical resolution in large models (see Chen and Ravaillion, 2004) and requires good microeconomic data on the income and expenditure side.…”
Section: Income Distribution and Poverty Measurement In A Cge Contextmentioning
confidence: 99%