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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