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31. Trade Liberalization and Spatial Inequality: A Methodological Innovation in Vietnamese Perspective

Author:
Henning Tarp Jensen and Finn Tarp
Publication Date:
06-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In this paper we calibrate two static computable general equilibrium (CGE) models with respectively 16 and 5,999 representative households. Aggregated and disaggregated household categories are consistently embedded in a 2000 social accounting matrix for Vietnam, mapping on a one-to-one basis to each other. Distinct differences in poverty assessments emerge when the impact of trade liberalization is analyzed in the two models. This highlights the importance of modeling micro household behavior and related income and expenditure distributions endogenously within a static CGE model framework. Our simulations indicate that poverty will rise following a revenue-neutral lowering of trade taxes. This is interpreted as a worst case scenario, which suggests that government should be proactive in combining trade liberalization measures with a propoor fiscal response to avoid increasing poverty in the short to medium term.
Topic:
Economics, Human Welfare, and Poverty
Political Geography:
Vietnam and Southeast Asia

32. Microsimulation, CGE and Macro Modelling for Transition and Developing Economies

Author:
James B. Davies
Publication Date:
06-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Alternative approaches to modelling distributional and welfare effects of changes in policy and the economic environment in developing and transition countries are surveyed. Microsimulations range from pure accounting approaches to models with behavioural equations based on econometric estimates and various dynamic models. Microsimulation accounting models are key to analysing the impact effects of tax and benefit changes and are becoming widespread. Computable general equilibrium (CGE) modelling endogenizes price changes and changes in industry and labour market structure. An essential CGE input is a social accounting matrix (SAM), which can be used to do simple multiplier analyses. A wide range of macroeconomic models have also been used in developing countries, endogenizing variables like interest rates and exchange rates.
Topic:
Development, Economics, and Human Welfare

33. Changes in Spatial Income Inequality in the Philippines: An Exploratory Analysis

Author:
Arsenio M. Balisacan and Nobuhiko Fuwa
Publication Date:
05-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The purpose of this paper is to establish some basic facts about income inequality in the Philippines, with a special focus on the importance of spatial income inequality. Despite major fluctuations in macroeconomic performances, income inequality remained relatively stable during the years 1985-2000. Spatial inequality accounts for a sizable but not overwhelming portion of the national-level income inequality, and the relative importance of spatial inequality was declining over time. We also find that mean income levels across provinces were converging at a much faster rate than those observed in currently developed countries.
Topic:
Development, Economics, and Human Welfare
Political Geography:
Philippines and Southeast Asia

34. The Medium- and Long-term Effects of an Expansion of Education on Poverty in Côte d'Ivoire: A Dynamic Microsimulation Study

Author:
Michael Grimm
Publication Date:
05-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
I use a dynamic microsimulation model to analyse the distributional effects of an expansion of education in Côte d'Ivoire in the medium and long term. The simulations are performed in order to replicate several policies in force or subject to debate in this country. Various hypotheses concerning the evolution of returns to education and labour demand are tested. The direct effects between education and income as well as the different transmission channels, such as occupational choices, fertility, and household composition, are analysed. The effects of educational expansion on the growth of household incomes, their distribution and poverty depend very crucially on the hypothesis made on the evolution of returns to education and labour demand. If returns to education remain constant and the labour market segmented, the effects will be very modest.
Topic:
Economics, Education, and Human Welfare
Political Geography:
Africa

35. Economic Well-being and Non-economic Well-being: A Review of the Meaning and Measurement of Poverty

Author:
Andrew Sumner
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper discusses the measurement of poverty and well-being. A historical overview is given of the last fifty years. This is followed by discussion of three groupings of indicators: those measures based primarily on economic well-being; those based on non-economic well-being and composite indicators. It is argued that the choice of indicator should reflect its purpose and that economic measures are best when quick, rough-and-ready, short run, aggregate inferences are required. In contrast, non-economic measures are better when greater depth on medium- or longer-term trends and/or dis-aggregation are required.
Topic:
Demographics, Economics, Human Welfare, and Poverty

36. Well-being and the Complexity of Poverty: A Subjective Well-being Approach

Author:
Mariano Rojas
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This investigation studies human well-being from a subjective well-being approach. On the basis of a Mexican database the investigation shows that there is a weak relationship between subjective well-being and indicators of well-being such as income and consumption. Therefore, subjective well-being provides additional useful information to study human well-being and, in consequence, poverty.
Topic:
Economics, Human Welfare, and Poverty
Political Geography:
Latin America, Central America, North America, and Mexico

37. Income-based Measures of Average Well-being

Author:
Steve Dowrick
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Internation comparisons of average national incomes omit important information about leisure, home production, health, etc. They are also bedevilled by index number problems. This paper suggests ways of combining working hours and life-expectancy with income comparisons, and shows that the fixed-price indexes of real income, such as those in the Penn World Table, substantially understate the income gaps between the poorest and richest countries.
Topic:
Demographics, Economics, Human Welfare, and Poverty

38. Subjective Measures of Well-being

Author:
Ruut Veenhoven
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper deals with three questions: (1) What are 'subjective' measures? (2) What is 'well-being'? and (3) Are subjective measures of well-being of use for policymaking, in particular in developing nations?
Topic:
Development, Human Welfare, and Poverty

39. Human Well-being: Concepts and Conceptualizations

Author:
Des Gasper
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Economic measures of income have ignored large areas of human well-being and are poor measures of well-being in the areas to which they attend. Despite increased recognition of those distortions, 'GNP per capita continues to be regarded as the quintessential indicator of a country's living standard' (Partha Dasgupta). Well-being seems to have intuitive plausibility as a concept, but in practice we encounter a bewilderingly diverse family of concepts and approaches, partly reflecting different contexts, purposes, and foci of attention. Is there a unifying framework that yet respects the complexity and diversity of well-being? This paper presents an imperfect comparative and integrative framework that builds on the contributions by Sen and others. We move toward the framework gradually, since well-being concepts are in fact complex entitities which reflect pictures of personhood and of science. Insight grows through surveying a wide range of relevant experience and views, before risking blinkering one's vision in a framework. The paper then uses the framework to examine conceptualizations of human well-being, by Dasgupta, Sen, Nussbaum, Doyal and Gough, and Alkire.
Topic:
Demographics, Development, Human Welfare, and Poverty

40. Gender-related Indicators of Well-being

Author:
Stephan Klasen
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper discusses the rationale as well as the challenges involved when constructing gender-related indicators of well-being. It argues that such indicators are critically important but that their construction involves a number of conceptual and measurement problems. Among the conceptual issues considered are the space in which gender inequality in well-being is to be measured, whether the indicators should track wellbeing of males and females separately or adjust overall measures of well-being by the gender inequality in well-being, whether gender equality in every indicator is necessarily the goal, how to assess gender inequality that is apparently desired by males and females, and what role indicators of agency or empowerment should play in genderrelated indicators of well-being. Among the most important measurement issues addressed are; the role of the household in allocating resources, the question of stocks versus flows, as well as significant data gaps when it comes to gender inequalities. Where appropriate, remedies to the conceptual and measurement issues are proposed. The paper also briefly reviews UNDP's gender-related indices to illustrate some of the challenges involved.
Topic:
Development, Gender Issues, Human Welfare, and Poverty