This research project aims at developing and updating a CGE (Computable General Equilibrium) model to analyze the distributional impact of economic policies. The model to be developed is a multi-sectors, multi-households CGE model with a strong feature in distributional analysis.
It can be used, for example, to study the impact of economic shocks has on inequality and poverty. It captures the inter-dependence among markets in the determination of both price of commodities and factor of productions and how it will affect distribution of income. As a departure from the previous literature, the disaggregation of household by expenditure classes allows for precise estimates of the distributional impact and poverty incidence.