Policy Analysis with a Disaggregated Economic - Demographic Model
نویسندگان
چکیده
The purpose of this paper is to show that useful information about a wide variety of proposed government policies can be obtained through simulation experiments with.a detailed macroeconomic model. In particular, the simulation technique can provide information about the effects of a policy on the long-run growth of per capita income. Since accelerating the growth of per capita income is usually an important national goal, especially in underdeveloped countries, this kind of information should be of special interest to the authorities who must decide which policies to adopt and which to reject. The advantage of using a macroeconomic model in evaluating an individual policy is that the mode! permits one to recognize various indirect effects or repercussions which are generally ignored in standard techniques of evaluation. Consider, for example, a policy of increasing enrolment in secondary schools. A standard procedure here would involve comparing the increase in the future earnings of the additional students with the cost of the policy.’ But this would ignore various other ways in which the policy may affect economic well-being. In particular, an expansion of education among teenage girls is likely to cause a reduction in fertility rates, with generally positive effects on the growth of per capita income. Furthermore, the wage-rates which govern the size of the direct return to secondary schooling are not really exogenous, as assumed in conventional benefit-cost analysis, but may be affected by the policy itself. If the policy
منابع مشابه
The Effect of Monetary Shocks on Disaggregated Prices in a Data Rich Environment: a Bayesian FAVAR Approach
Price stability has been the foremost task of monetary policy. The information relating to the response of prices to monetary policy shocks is essential for conducting monetary policy in general and for inflation targeting of central banks in particular. Most of the published empirical studies analyze the response of an aggregate price index like CPI or a consumption deflator and their r...
متن کاملEPQ model with scrap and backordering under Vendor managed inventory policy
This paper presents the economic production quantity (EPQ) models for the imperfect quality items produced with/without the presence of shortage condition. The models are presented in a two-level supply chain composed of a single manufacturer and a single buyer to investigate the performance of vendormanaged inventory (VMI) policy. The total costs are minimized to obtain the optimal production ...
متن کاملPLANNING AND ENVIRONMENTAL POLICY RESEARCH SERIES WORKING PAPERS 2006 A Spatial Econometric Analysis of Well-being using a Geographical Information Systems Approach
In recent years, economists have being using socio-economic and socio-demographic characteristics to explain self-reported individual happiness or satisfaction with life. Using Geographical Information Systems (GIS), we employ data disaggregated at the individual and local level to show that while these variables are important, consideration of amenities such as climate, environmental and urban...
متن کاملA Comparison of Second-Best Policies
In this paper we evaluate and compare long-run economic effects of six road-pricing schemes aimed at internalizing social costs of transportation. In order to conduct this analysis, we employ a spatially disaggregated general equilibrium model of a regional economy that incorporates decisions of residents, firms, and developers, integrated with a spatially-disaggregated strategic transportation...
متن کامل