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Tracking the Poverty and Distributional Implications of Macroeconomic Performance with PAMS

Sponsor: Poverty Reduction and Economic Management Network

Materials

Presentation (254Kb)
Tuesday, May 20, 2003
12.30 - 2.00 PM
Presenters: B. Essama Nssah (PREMPR, World Bank) and Issouf Samake (AFTP4, World Bank)

The Poverty Analysis Macroeconomic Simulator (PAMS) is a flexible framework designed to help analysts sort out the poverty and distributional implications of macroeconomic shocks and policies.  The framework is part of an ongoing Bank-wide effort to develop tools for evaluating the poverty impact of economic policies.  It comprises three basic components that interact recursively:

  1. A macro module capable of projecting, in a consistent manner, relevant macroeconomic variables from the national accounts, the public budget and the balance of payments;
  2. A meso module describing various transmission mechanisms through factor markets and the public budget;
  3. A household module that translates the functional distribution of economic welfare into a size distribution. 

The purpose of the presentation in the highlight box to the right is to explain the structure of PAMS and demonstrate its numerical implementation based on data from Burkina Faso. The presentation includes a discussion of progress made in the development of a reduced-form version of the framework applied to Albania, relying on a disaggregated parameterization of the Lorenz curve. (Use the free Adobe Acrobat Reader to view the PDF file).


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