Subsidy simulations

SUBSIM: a Stata toolkit for the study of subsidy reforms

Developed by Araar Abdelkrim (PEP and Laval University) and Paolo Verme (World Bank), the objective of the SUBSIM project is to provide a set of tools for rapid distributional analyses of subsidies and simulations of subsidy reforms.

SUBSIM is an automated subsidies simulation model designed to carry out rapid distributional analyses of consumers' subsidies and simulations of subsidies reforms. The model estimates the impact of subsidies reforms on household welfare, poverty and inequality and the government budget with or without compensatory cash transfers. The model can estimate direct and indirect effects using household budget survey data and input-output matrixes. It can be applied to energy, food or water subsidies and accommodates linear and non-linear pricing. It produces 22 tables and 10 graphs of automated output in English or French and allows saving input data for future reference.


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