New Research Initiative on “Simulating the Distributive Impacts of Different Growth Strategies”

PEP has successfully bid for a $AUS 420,000 study on the distributive impacts of different growth strategies.

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Governments encourage growth through various policies: infrastructure, education, training, health, agricultural extension, trade, etc. Each strategy has wide-ranging impacts on the entire economy (sectoral production, wages and other factor returns, consumer prices, public finances, etc.) with very different distributive consequences. By building these "motors of growth" into an economy-wide model linked to a household survey-based microsimulation model, the project will simulate the distributive impacts of various growth policies, provide insights on accompanying policies to allow greater participation by the poor and a tool for researchers and policy makers. In addition to funding for PEP resource persons to develop the core methodology, this initiative will also finance two of three country studies by teams of local researchers. This project will draw on the philosophy of the Poverty and Economic Policy (PEP ) network and will be carried out in collaboration with an international coordinating team of experienced researchers in macro and micro-modeling.

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