Pereira da Silva, Luiz A.Essama-Nssah, B.Samake, Issouf2014-08-082014-08-082002-09https://hdl.handle.net/10986/19273The Poverty Analysis Macroeconomic Simulator (PAMS) is a model that links standard household surveys with macro frameworks. It allows users to assess the effect of macroeconomic policies-in particular, those associated with Poverty Reduction Strategies papers-on sectoral employment and income, the incidence of poverty, and income distribution. PAMS (in Excel) has three interconnected components: (1) A standard aggregate macro-framework that can be taken from any macro-consistency model (for example, RMSM-X, 123) to project GDP, national accounts, the national budget, the BoP, price levels, and so on, in aggregate consistent accounts. (2) A labor market model breaking down labor categories by skill level and economic sectors whose production total is consistent with that of the macro framework. Individuals from the household surveys are grouped in representative groups of households defined by the labor category of the head of the household. For each labor category, labor demand depends on sectoral output and real wages. Wage income levels by economic sector and labor category can thus be determined. In addition, different income tax rates and different levels of budgetary transfers across labor categories can be added to wage income. (3) A model that uses the labor model results for each labor category to simulate the income growth for each individual inside its own group, assumed to be the average of its group. After projecting individual incomes, PAMS calculates the incidence of poverty and the inter-group inequality. PAMS can produce historical or counterfactual simulations of: + Alternative growth scenarios with different assumptions for inflation, fiscal, and current account balances. These simulations allow test tradeoffs within a macro stabilization program. + Different combinations of sectoral growth (agricultural or industrial, tradable or non-tradable goods sectors), within a given aggregate GDP growth rate. + Tax and budgetary transfer policies. For example, PAMS will simulate a baseline macro-scenario for Burkina Faso corresponding to an existing IMF/World Bank-supported program and introduce changes in tax, fiscal, and sectoral growth policies to reduce poverty and inequality more effectively than the base scenario. So, the authors argue that there are several possible "equilibria" in terms of poverty and inequality within the same macro framework.en-USCC BY 3.0 IGOPOVERTY ANALYSISMACROECONOMIC MODELSHOUSEHOLD SURVEYSMACROECONOMIC POLICYPOVERTY REDUCTION STRATEGIESEMPLOYMENT ECONOMETRIC MODELSINCOME ESTIMATESPOVERTY INCIDENCEINCOME DISTRIBUTIONAGGREGATE VARIABILITYNATIONAL ACCOUNTSNATIONAL BUDGETSPRICE STRUCTURESLABOR MARKET ECONOMETRIC MODELSLABOR DEMANDWAGE LEVELSECONOMIC SECTORSINCOME TAX LAW & LEGISLATIONFISCAL POLICYSECTORAL ADJUSTMENTTAXATION AGGREGATE LEVELAGGREGATE OUTPUTAGRICULTURAL EXPORTSAGRICULTURAL OUTPUTAGRICULTURAL PRODUCTIONAGRICULTURAL SECTORAGRICULTUREAVERAGE GROWTHAVERAGE GROWTH RATEBASE YEARBENCHMARKSBUDGET CONSTRAINTSBUSINESS ENVIRONMENTCAPITAL FLOWSCENTRAL PLANNINGCONCESSIONAL LENDINGCOUNTRY CASEDEBTDEBT RELIEFDECENTRALIZATIONDEVELOPED COUNTRIESDEVELOPMENT ASSISTANCEDEVELOPMENT ECONOMICSDEVELOPMENT GOALSDEVELOPMENT THEORYDISTRIBUTIONAL CHANGEDOMESTIC SAVINGSECONOMETRIC MODELSECONOMIC LITERATUREECONOMIC MANAGEMENTECONOMIC POLICIESECONOMIC SECTORSECONOMICSECONOMISTSELASTICITIESELASTICITYEMPLOYMENTEQUILIBRIUMEXCHANGE RATEEXCHANGE RATESEXPENDITURESEXPORTSFUNCTIONAL FORMGDPGDP PER CAPITAGENERAL EQUILIBRIUM MODELGROWTH POLICIESGROWTH RATEGROWTH RATESHOUSEHOLD DATAHOUSEHOLD SURVEYHOUSEHOLD SURVEYSIMPORTSINCOMEINCOME COUNTRIESINCOME DISTRIBUTIONINCOME GROWTHINCOME LEVELSINCOME MODULEINCOME POVERTYINFLATIONINFORMAL SECTORINFORMAL SECTORSINSTITUTIONAL ARRANGEMENTSINSTITUTIONAL CHANGESINVESTMENT CLIMATEJOB MARKETLABOR FORCELABOR MARKETLABOR MARKETSLABOR SUPPLYLOW-INCOME COUNTRIESMACROECONOMIC FRAMEWORKMACROECONOMIC OUTCOMESMACROECONOMIC POLICYMEAN INCOMEMEAN INCOME GROWTHNATIONAL ACCOUNTSOUTPUT GROWTHPARTICIPATORY POVERTYPARTICIPATORY POVERTY ASSESSMENTSPOLICY CHANGEPOLICY CHOICESPOLICY ISSUESPOLICY MEASURESPOLITICAL ECONOMYPOOR GROWTH STRATEGIESPOOR PEOPLEPOPULATION GROWTHPOVERTY ANALYSISPOVERTY ASSESSMENTPOVERTY ASSESSMENTSPOVERTY HEADCOUNTPOVERTY IMPACTPOVERTY LEVELSPOVERTY LINEPOVERTY LINESPOVERTY MONITORINGPOVERTY REDUCTIONPOVERTY REDUCTION STRATEGYPRICE LEVELSPRIVATE SECTORPRIVATE SECTORSPRO-POORPRO-POOR GROWTHPRODUCTION FUNCTIONPRODUCTION TECHNOLOGYPRODUCTIVITYPUBLIC EXPENDITUREPUBLIC INVESTMENTPUBLIC SECTORPUBLIC SERVICESQUANTITATIVE METHODSRAPID GROWTHREAL EXCHANGE RATEREAL EXCHANGE RATESREAL WAGE RATESREAL WAGESREFORM POLICIESRELATIVE INCOMERELATIVE INCOMESRESOURCE ALLOCATIONRURAL AREASRURAL ECONOMYSAVINGSSECTOR EMPLOYMENTSKILLED WORKERSSOCIAL EXPENDITURESSOCIAL INDICATORSSTRUCTURAL ADJUSTMENTSTRUCTURAL ADJUSTMENT PROGRAMSSTRUCTURAL POLICIESSTRUCTURAL REFORMSTRUCTURAL REFORMSSUBSTITUTION EFFECTTAX RATESTAXATIONTAXESTIME SERIESTRADE POLICYTRADE SHOCKSTRADEOFFSUNEMPLOYMENTUNSKILLED LABORURBAN AREASVOLUNTARY UNEMPLOYMENTWAGE INCOMEWAGE LEVELWAGE RATES10.1596/1813-9450-2888