Sector Guidance

PSIA Guidance on Sector-Specific Policy Reforms

While information is available on the general approach, techniques and tools for distributional analysis, each sector displays a series of specific characteristics. These have implications for the analysis of distributional impacts, including in terms of the types of impacts and transmission channels that warrant particular attention, the tools and techniques most appropriate, the data sources typically required, and the range of political economy factors most likely to affect the reform process.

Hence, as a complement to the resources already available in our website, each sector-specific link below provides an overview of the specific issues arising in the analysis of the distributional impacts of selected categories of policy and institutional reforms. Each subsection then offers guidance on the selection of tools and techniques most adapted to the reforms under scrutiny, and offers examples of applications of these approaches.

The individual notes on each subsection are meant to be indicative only and do not attempt to cover issues for each selected type of reform in an exhaustive fashion. In addition, the notes currently mainly focus on economic analysis.

For more information on tools for economic, social, political and institutional analysis, please go to the Tools and Methods section.

In addition, specific country examples are available in the section on Country Experience. 

Description of the Sector-Specific Notes

Each note is organized around the different transmission channels through which policy reforms can be expected to have an impact on the population. It provides an overview of the typical direction and magnitude of the expected impacts; the implementation mechanisms through which reforms are typically carried out; the stakeholders that are likely to be affected by the reform, positively or negatively, or that are likely to affect the reform; and the methodologies typically used to analyze the distributional impact. Each note illustrates these points with a series of examples, applications, references, sources, and a bibliography.

The notes have been published in two volumes: the first volume, Analyzing the Distributional Impact of Reforms Volume I, covers   education, agricultural markets, land policy, monetary and exchange rate policy, trade, and utility provision. The second volume, Analyzing the Distributional Impact of Reforms Volume II, covers pension, health, labor markets, public sector downsizing, taxation, decentralization, and an overview of approaches to the modeling of macroeconomic shocks and policies.

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