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Simulating the Poverty Impact of Macroeconomic Shocks and Policies within the PAMS Framework

March 16-5, 2005
9:00 am - 1:00 pm
Room F, U Building, 3rd Floor, 1800 G Street NW

Instructor: B. Essama-Nssah

Course Objective: The importance of distributional issues in policymaking creates a need for empirical tools to assess the social impact of economic shocks and policies. PAMS (Poverty Analysis Macroeconomic Simulator) is a tool designed to help World Bank and IMF staff analyze the poverty and distributional impacts of various macroeconomic reforms that are often part of these Institutions’ programs in client countries. The purpose of the course is to provide participants an in-depth understanding of the structure and operation of PAMS II (the second generation of this tool). This version uses EViews as a computing platform and a general equilibrium model to represent the macroeconomy. The basic idea is to link recursively a computable general equilibrium (CGE) model to a poverty and inequality simulator built upon a parameterization of the Lorenz curve.

By the end of the course, the successful participant will fully grasp the following:

  • Basic Syntax of EViews 5.1
  • The Structure and Normative Underpinnings of the Lorenz Curve
  • Recovering Inequality and Poverty Measures from a Parameterized Lorenz Curve
  • Assessing the Social Impact of Economic Growth
  • The Logic of General Equilibrium Modeling
  • The Numerical Implementation of  Simple Two-Sector  General Equilibrium Models
  • Linking Poverty Outcomes to Economic Shocks and Policies

Target Audience: Any interested World Bank/IMF staff, in particular country economists and analysts dealing with the issues of poverty and distributional impact of economic policies.

Registration: Registration for this course should be completed via the World Bank Learning Catalog.

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