Essama-Nssah, B.2012-06-202012-06-202005-08https://hdl.handle.net/10986/8614The importance of distributional issues in policymaking creates a need for empirical tools to assess the social impact of economic shocks and policies. This paper reviews some of the modeling approaches that are currently in use at the World Bank and other international financial institutions. The specification of these models is dictated by the issues at stake, the knowledge about the nature of the process involved, and the availability and reliability of relevant data. Furthermore, shocks and policies have macroeconomic, structural, and distributional implications. This creates interdependence between such policy issues. Finally, the distributional impact of shocks and policies hinges on the heterogeneity of socioeconomic agents with respect to endowments and behavior. In the end, each modeling approach should be judged on how well it handles the interdependence between policy issues and the heterogeneity of the stakeholders, given other constraints.CC BY 3.0 IGOAGGREGATE GROWTHAGGREGATE LEVELAGGREGATE OUTPUTAGRICULTURAL TRADEAGRICULTUREALTERNATIVE GROWTH PATHSANNUAL GROWTHASSESSING POVERTYBASE YEARBENCHMARKCAPITAL FLOWSCONSUMER PRICE INDEXESCONSUMERSCONSUMPTION DISTRIBUTIONCPICURRENCY UNITSDATA AVAILABILITYDATA SETDATA SETSDEMAND CURVESDEMAND FUNCTIONSDEVELOPING COUNTRIESDEVELOPMENT STRATEGIESDISPOSABLE INCOMEDISTRIBUTIONAL ANALYSISDISTRIBUTIONAL DATADISTRIBUTIONAL IMPACTDISTRIBUTIONAL IMPLICATIONSECONOMIC ACTIVITIESECONOMIC GROWTHECONOMIC OUTCOMESECONOMIC SHOCKSECONOMIC STAGNATIONECONOMIC WELFAREELASTICITIESEMPLOYMENTEMPLOYMENT STATUSENDOGENOUS VARIABLESEQUILIBRIUMEXCHANGE RATEEXOGENOUS VARIABLESFACTOR PRICESFINANCIAL INSTITUTIONSFINANCIAL SECTORFIXED PRICESGDPGDP DEFLATORGENERAL EQUILIBRIUM ANALYSISGENERAL EQUILIBRIUM MODELGINI COEFFICIENTGINI INDEXGROSS DOMESTIC PRODUCTGROWTH COMPONENTGROWTH MODELSGROWTH RATEGROWTH RATESHEADCOUNT POVERTYHOUSEHOLD BEHAVIORHOUSEHOLD CHARACTERISTICSHOUSEHOLD CONSUMPTIONHOUSEHOLD HEADHOUSEHOLD INCOMEHOUSEHOLD LEVELHOUSEHOLD SIZEHOUSEHOLD SURVEYHOUSEHOLD WELFAREIMPORTSINCOMEINCOME DISTRIBUTIONINCOME GENERATIONINCOME INEQUALITYINCOME LEVELINCOME LEVELSINCOME SOURCESINEQUALITY COMPONENTINEQUALITY CONSTANTINEQUALITY MEASURESINTERMEDIATE GOODSLABOR MARKETLAND OWNERSHIPLIQUIDITYLIVING STANDARDSLOCAL CURRENCYLORENZ CURVEMACROECONOMIC ANALYSISMACROECONOMIC FRAMEWORKMACROECONOMIC MODELSMACROECONOMIC SHOCKSMARGINAL UTILITYMEAN CONSUMPTIONMEAN INCOMEMEAN INCOMESMEAN LOG DEVIATIONMINIMUM WAGEMONETARY POLICYMONEY SUPPLYNATIONAL ACCOUNTSNATIONAL AVERAGENATIONAL LEVELNATIONAL POVERTYOBSERVED INCREASEOILOPEN ECONOMIESOPTIMIZATIONOPTIMIZING BEHAVIOROUTPUT GROWTHPER CAPITA CONSUMPTIONPER CAPITA INCOMEPOLICY ANALYSISPOLICY CHOICESPOLICY IMPACTPOLICY INSTRUMENTSPOLICY ISSUESPOLICY MAKINGPOLICY OPTIONSPOLICY REFORMPOLICY REFORMSPOLICY RESEARCHPOLICY RESPONSEPOLITICAL FACTORSPOPULATION GROWTHPOPULATION GROWTH RATESPOPULATION SHAREPOVERTY ANALYSISPOVERTY ASSESSMENTPOVERTY CHANGESPOVERTY COMPARISONSPOVERTY DYNAMICSPOVERTY GAPPOVERTY HEADCOUNTPOVERTY INCIDENCEPOVERTY INDEXESPOVERTY INDICATORPOVERTY ISSUESPOVERTY LINEPOVERTY LINESPOVERTY MEASURESPOVERTY OUTCOMESPOVERTY RATEPOVERTY RATESPOVERTY REDUCTIONPOVERTY REDUCTION STRATEGYPRICE CHANGESPRODUCERSPROFIT FUNCTIONSPROPORTIONATE CHANGESPUBLIC EXPENDITUREPUBLIC POLICYPURCHASING POWERPURCHASING POWER PARITYRAPID GROWTHREAL GROWTHREDUCED POVERTYREGIONAL DISPARITIESREGRESSION ANALYSISREPRESENTATIVE SAMPLERESOURCE ALLOCATIONRESOURCE ENDOWMENTSRURAL AREASRURAL POVERTYSAVINGSSENSITIVITY ANALYSISSIGNIFICANT REDUCTIONSOCIAL INDICATORSSOCIAL POLICIESSQUARED POVERTY GAPTRADE BARRIERSTRADE LIBERALIZATIONTRADE REFORMSTRADE SHOCKSURBAN AREASURBAN HOUSEHOLDSUTILITY FUNCTIONWAGE INCOMEWAGE RATESWAGESWORLD TRADE ORGANIZATIONWorld Bank10.1596/1813-9450-3682