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)
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