Policy Options for Meeting the Millennium Development Goals in Brazil : Can Micro-Simulations Help?
The authors investigate whether micro-simulation techniques can shed light on the types of policies that should be adopted by countries wishing to meet their Millennium Development Goals. They compare two families of micro-simulations. The first fa...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/02/2166844/policy-options-meeting-millennium-development-goals-brazil-can-micro-simulations-help http://hdl.handle.net/10986/19147 |
| Summary: | The authors investigate whether
micro-simulation techniques can shed light on the types of
policies that should be adopted by countries wishing to meet
their Millennium Development Goals. They compare two
families of micro-simulations. The first family of
micro-simulations decomposes required poverty changes into a
change in the mean and a reduction in inequality. Although
it highlights the importance of inequality reduction, it
appears to be too general to be of much use for
policymaking. The second family of micro-simulations is
based on a richer model of behavior in the labor markets. It
points to the importance of combining different policy
options, such as educational expansion and targeted
conditional redistribution schemes, to ensure that the
poorest people in society are successfully reached. But the
absence of market equilibria in these statistical models, as
well as the strong stability assumptions which are implicit
in their use, argue for extreme caution in their interpretation. |
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