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Module 7: Evaluating the Poverty Impacts of Economy-Wide Policies

April 14-15, 2008
The World Bank

Objective:  Policy impact analysis entails an assessment of variations in individual and social welfare attributable to an exogenous shock or the implementation of a policy.  Economic shocks and policies may have at once macroeconomic, structural and distributional implications working through a number of flow-of-funds variables, and a set of market and non-market institutions.  This creates a need for an analytical framework that explicitly accounts for the interdependence between these three dimensions.  The objective of this module is to provide participants with a sound understanding of the logic of social impact analysis and its application to the evaluation of the poverty and distributional impacts of economy-wide policies.  The module focuses on general equilibrium modeling and microsimulation, and presents a variety of case studies to illustrate the application of these methods.  The basic approach followed here is to link a social evaluation criterion to a computable general equilibrium (CGE) model describing the fundamental determinants of poverty and inequality namely, individual behavior and social interaction.

Course Outline (19kb PDF)

Background Papers


Back to Poverty and Inequality Analysis Course 2008

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