Using Macroeconomic Computable General Equilibrium Models for Assessing Poverty Impact of Structural Adjustment Policies
How can we assess the impact of various liberalization policies on poverty reduction in developing Asia? To answer this question, this paper surveys the implications of various macroeconomic computable general equilibrium (CGE) models. A careful specification of production, employment, and income distribution with special emphasis on the export sectors and financial structure, allows a detailed analysis of the impact of both trade and financial liberalization on poverty reduction. A novel preliminary model is presented which can be used as a "generic" model to carry out this type of analysis.
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The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.
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