Assessing Ex Ante the Poverty and Distributional Impact of the Global Crisis in a Developing Country : A Micro-simulation Approach with Application to Bangladesh

Measuring the poverty and distributional impact of the global crisis for developing countries is not easy, given the multiple channels of impact and the limited availability of real-time data. Commonly-used approaches are of limited use in addressi...

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Main Authors: Habib, Bilal, Narayan, Ambar, Olivieri, Sergio, Sanchez-Paramo, Carolina
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100316132959
http://hdl.handle.net/10986/3725
id okr-10986-3725
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ABSOLUTE TERMS
ADVERSE IMPACT
AGGREGATE INCOME
AGGREGATE POVERTY
AGRICULTURAL EMPLOYMENT
AGRICULTURAL GROWTH
AGRICULTURAL SECTOR
AGRICULTURAL SECTORS
AGRICULTURAL WAGE
AGRICULTURAL WORKERS
AGRICULTURE
AVERAGE GROWTH
AVERAGE HOUSEHOLD INCOME
AVERAGE INCOME
BASE YEAR
BASIC FOOD BASKET
BENCHMARK
CHANGES IN POVERTY
CONSUMER PRICE INDEX
CONSUMPTION DATA
CONSUMPTION GROWTH
CONSUMPTION LEVELS
COPING STRATEGY
COUNTERFACTUAL
COUNTRY CASE
DAILY WAGE
DATA AVAILABILITY
DECLINE IN POVERTY
DEFLATORS
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DISTRIBUTIONAL EFFECTS
DISTRIBUTIONAL IMPACT
DOMESTIC CREDIT
DOMESTIC PRICES
ECONOMETRIC MODELS
ECONOMIC ACTIVITY
ECONOMIC GROWTH
ECONOMIC LITERATURE
EDUCATIONAL ATTAINMENT
ELASTICITY
EMPIRICAL MODELS
EMPLOYMENT OPPORTUNITIES
EMPLOYMENT STATUS
ERROR TERMS
EXCHANGE RATE
EXCHANGE RATES
EXPORTS
EXTREME POVERTY
FINANCIAL CRISIS
FISCAL POLICIES
FOOD BASKET
FOOD INTAKE
FOOD ITEMS
FOOD NEEDS
FOOD PRICE
FOOD PRICES
GINI INDEX
GLOBAL MARKETS
GLOBAL POVERTY
GROWTH PROJECTIONS
GROWTH RATE
GROWTH RATES
HIGH GROWTH
HIGH POVERTY
HOUSEHOLD DATA
HOUSEHOLD HEADS
HOUSEHOLD INCOME
HOUSEHOLD INCOMES
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
IMPACT ON POVERTY
IMPACT ON POVERTY REDUCTION
INCOME
INCOME BY REGION
INCOME DATA
INCOME DISTRIBUTION
INCOME GROUPS
INCOME LEVELS
INCOME POVERTY
INCOME SHOCK
INDUSTRIALIZATION
INDUSTRIALIZED COUNTRIES
INEQUALITY
INEQUALITY FALLS
INEQUALITY MEASURES
LABOR FORCE
LABOR MARKET
LAND OWNERSHIP
MACROECONOMIC ENVIRONMENT
MACROECONOMIC SHOCKS
MICRO DATA
NATIONAL POVERTY
NATURAL DISASTERS
NEGATIVE IMPACT
NOMINAL INCOME
OUTPUT GROWTH
PER CAPITA CONSUMPTION
PER CAPITA EXPENDITURE
PER CAPITA INCOME
PER CAPITA INCOMES
POLICY RESEARCH
POOR
POOR HOUSEHOLDS
POOR INDIVIDUALS
POOR PEOPLE
POOR RURAL HOUSEHOLDS
POVERTY ASSESSMENT
POVERTY ESTIMATES
POVERTY GAP
POVERTY HEADCOUNT RATE
POVERTY HEADCOUNT RATES
POVERTY IMPACT
POVERTY LINE
POVERTY LINES
POVERTY MEASURES
POVERTY RATE
POVERTY RATES
POVERTY REDUCTION
PUBLIC EMPLOYMENT
PUBLIC SECTOR
PURCHASING POWER
RAPID GROWTH
REAL GDP
REGIONAL DIFFERENCES
RELATIVE IMPORTANCE
RELATIVE INEQUALITY
RELATIVE PRICES
RURAL
RURAL AREAS
RURAL COUNTERPARTS
RURAL POPULATION
SAVINGS
SKILLED LABOR
SOCIAL SECURITY
SPATIAL DIFFERENCES
SQUARED POVERTY GAP
SUBSISTENCE
SUBSISTENCE FARMERS
UNDERESTIMATES
UNEMPLOYMENT
UNEMPLOYMENT RATE
URBAN AREAS
VALUE ADDED
WAGE GROWTH
WAGES
WELFARE IMPACT
WELFARE MEASURES
spellingShingle ABSOLUTE TERMS
ADVERSE IMPACT
AGGREGATE INCOME
AGGREGATE POVERTY
AGRICULTURAL EMPLOYMENT
AGRICULTURAL GROWTH
AGRICULTURAL SECTOR
AGRICULTURAL SECTORS
AGRICULTURAL WAGE
AGRICULTURAL WORKERS
AGRICULTURE
AVERAGE GROWTH
AVERAGE HOUSEHOLD INCOME
AVERAGE INCOME
BASE YEAR
BASIC FOOD BASKET
BENCHMARK
CHANGES IN POVERTY
CONSUMER PRICE INDEX
CONSUMPTION DATA
CONSUMPTION GROWTH
CONSUMPTION LEVELS
COPING STRATEGY
COUNTERFACTUAL
COUNTRY CASE
DAILY WAGE
DATA AVAILABILITY
DECLINE IN POVERTY
DEFLATORS
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DISTRIBUTIONAL EFFECTS
DISTRIBUTIONAL IMPACT
DOMESTIC CREDIT
DOMESTIC PRICES
ECONOMETRIC MODELS
ECONOMIC ACTIVITY
ECONOMIC GROWTH
ECONOMIC LITERATURE
EDUCATIONAL ATTAINMENT
ELASTICITY
EMPIRICAL MODELS
EMPLOYMENT OPPORTUNITIES
EMPLOYMENT STATUS
ERROR TERMS
EXCHANGE RATE
EXCHANGE RATES
EXPORTS
EXTREME POVERTY
FINANCIAL CRISIS
FISCAL POLICIES
FOOD BASKET
FOOD INTAKE
FOOD ITEMS
FOOD NEEDS
FOOD PRICE
FOOD PRICES
GINI INDEX
GLOBAL MARKETS
GLOBAL POVERTY
GROWTH PROJECTIONS
GROWTH RATE
GROWTH RATES
HIGH GROWTH
HIGH POVERTY
HOUSEHOLD DATA
HOUSEHOLD HEADS
HOUSEHOLD INCOME
HOUSEHOLD INCOMES
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
IMPACT ON POVERTY
IMPACT ON POVERTY REDUCTION
INCOME
INCOME BY REGION
INCOME DATA
INCOME DISTRIBUTION
INCOME GROUPS
INCOME LEVELS
INCOME POVERTY
INCOME SHOCK
INDUSTRIALIZATION
INDUSTRIALIZED COUNTRIES
INEQUALITY
INEQUALITY FALLS
INEQUALITY MEASURES
LABOR FORCE
LABOR MARKET
LAND OWNERSHIP
MACROECONOMIC ENVIRONMENT
MACROECONOMIC SHOCKS
MICRO DATA
NATIONAL POVERTY
NATURAL DISASTERS
NEGATIVE IMPACT
NOMINAL INCOME
OUTPUT GROWTH
PER CAPITA CONSUMPTION
PER CAPITA EXPENDITURE
PER CAPITA INCOME
PER CAPITA INCOMES
POLICY RESEARCH
POOR
POOR HOUSEHOLDS
POOR INDIVIDUALS
POOR PEOPLE
POOR RURAL HOUSEHOLDS
POVERTY ASSESSMENT
POVERTY ESTIMATES
POVERTY GAP
POVERTY HEADCOUNT RATE
POVERTY HEADCOUNT RATES
POVERTY IMPACT
POVERTY LINE
POVERTY LINES
POVERTY MEASURES
POVERTY RATE
POVERTY RATES
POVERTY REDUCTION
PUBLIC EMPLOYMENT
PUBLIC SECTOR
PURCHASING POWER
RAPID GROWTH
REAL GDP
REGIONAL DIFFERENCES
RELATIVE IMPORTANCE
RELATIVE INEQUALITY
RELATIVE PRICES
RURAL
RURAL AREAS
RURAL COUNTERPARTS
RURAL POPULATION
SAVINGS
SKILLED LABOR
SOCIAL SECURITY
SPATIAL DIFFERENCES
SQUARED POVERTY GAP
SUBSISTENCE
SUBSISTENCE FARMERS
UNDERESTIMATES
UNEMPLOYMENT
UNEMPLOYMENT RATE
URBAN AREAS
VALUE ADDED
WAGE GROWTH
WAGES
WELFARE IMPACT
WELFARE MEASURES
Habib, Bilal
Narayan, Ambar
Olivieri, Sergio
Sanchez-Paramo, Carolina
Assessing Ex Ante the Poverty and Distributional Impact of the Global Crisis in a Developing Country : A Micro-simulation Approach with Application to Bangladesh
geographic_facet South Asia
South Asia
South Asia
Asia
Bangladesh
relation Policy Research working paper ; no. WPS 5238
description Measuring the poverty and distributional impact of the global crisis for developing countries is not easy, given the multiple channels of impact and the limited availability of real-time data. Commonly-used approaches are of limited use in addressing questions like who are being affected by the crisis and by how much, and who are vulnerable to falling into poverty if the crisis deepens? This paper develops a simple micro-simulation method, modifying models from existing economic literature, to measure the poverty and distributional impact of macroeconomic shocks by linking macro projections with pre-crisis household data. The approach is then applied to Bangladesh to assess the potential impact of the slowdown on poverty and income distribution across different groups and regions. A validation exercise using past data from Bangladesh finds that the model generates projections that compare well with actual estimates from household data. The results can inform the design of crisis monitoring tools and policies in Bangladesh, and also illustrate the kind of analysis that is possible in other developing countries with similar data availability.
format Publications & Research :: Policy Research Working Paper
author Habib, Bilal
Narayan, Ambar
Olivieri, Sergio
Sanchez-Paramo, Carolina
author_facet Habib, Bilal
Narayan, Ambar
Olivieri, Sergio
Sanchez-Paramo, Carolina
author_sort Habib, Bilal
title Assessing Ex Ante the Poverty and Distributional Impact of the Global Crisis in a Developing Country : A Micro-simulation Approach with Application to Bangladesh
title_short Assessing Ex Ante the Poverty and Distributional Impact of the Global Crisis in a Developing Country : A Micro-simulation Approach with Application to Bangladesh
title_full Assessing Ex Ante the Poverty and Distributional Impact of the Global Crisis in a Developing Country : A Micro-simulation Approach with Application to Bangladesh
title_fullStr Assessing Ex Ante the Poverty and Distributional Impact of the Global Crisis in a Developing Country : A Micro-simulation Approach with Application to Bangladesh
title_full_unstemmed Assessing Ex Ante the Poverty and Distributional Impact of the Global Crisis in a Developing Country : A Micro-simulation Approach with Application to Bangladesh
title_sort assessing ex ante the poverty and distributional impact of the global crisis in a developing country : a micro-simulation approach with application to bangladesh
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100316132959
http://hdl.handle.net/10986/3725
_version_ 1764388015490203648
spelling okr-10986-37252021-04-23T14:02:12Z Assessing Ex Ante the Poverty and Distributional Impact of the Global Crisis in a Developing Country : A Micro-simulation Approach with Application to Bangladesh Habib, Bilal Narayan, Ambar Olivieri, Sergio Sanchez-Paramo, Carolina ABSOLUTE TERMS ADVERSE IMPACT AGGREGATE INCOME AGGREGATE POVERTY AGRICULTURAL EMPLOYMENT AGRICULTURAL GROWTH AGRICULTURAL SECTOR AGRICULTURAL SECTORS AGRICULTURAL WAGE AGRICULTURAL WORKERS AGRICULTURE AVERAGE GROWTH AVERAGE HOUSEHOLD INCOME AVERAGE INCOME BASE YEAR BASIC FOOD BASKET BENCHMARK CHANGES IN POVERTY CONSUMER PRICE INDEX CONSUMPTION DATA CONSUMPTION GROWTH CONSUMPTION LEVELS COPING STRATEGY COUNTERFACTUAL COUNTRY CASE DAILY WAGE DATA AVAILABILITY DECLINE IN POVERTY DEFLATORS DEVELOPING COUNTRIES DEVELOPING COUNTRY DISTRIBUTIONAL EFFECTS DISTRIBUTIONAL IMPACT DOMESTIC CREDIT DOMESTIC PRICES ECONOMETRIC MODELS ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMIC LITERATURE EDUCATIONAL ATTAINMENT ELASTICITY EMPIRICAL MODELS EMPLOYMENT OPPORTUNITIES EMPLOYMENT STATUS ERROR TERMS EXCHANGE RATE EXCHANGE RATES EXPORTS EXTREME POVERTY FINANCIAL CRISIS FISCAL POLICIES FOOD BASKET FOOD INTAKE FOOD ITEMS FOOD NEEDS FOOD PRICE FOOD PRICES GINI INDEX GLOBAL MARKETS GLOBAL POVERTY GROWTH PROJECTIONS GROWTH RATE GROWTH RATES HIGH GROWTH HIGH POVERTY HOUSEHOLD DATA HOUSEHOLD HEADS HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SIZE HOUSEHOLD SURVEY IMPACT ON POVERTY IMPACT ON POVERTY REDUCTION INCOME INCOME BY REGION INCOME DATA INCOME DISTRIBUTION INCOME GROUPS INCOME LEVELS INCOME POVERTY INCOME SHOCK INDUSTRIALIZATION INDUSTRIALIZED COUNTRIES INEQUALITY INEQUALITY FALLS INEQUALITY MEASURES LABOR FORCE LABOR MARKET LAND OWNERSHIP MACROECONOMIC ENVIRONMENT MACROECONOMIC SHOCKS MICRO DATA NATIONAL POVERTY NATURAL DISASTERS NEGATIVE IMPACT NOMINAL INCOME OUTPUT GROWTH PER CAPITA CONSUMPTION PER CAPITA EXPENDITURE PER CAPITA INCOME PER CAPITA INCOMES POLICY RESEARCH POOR POOR HOUSEHOLDS POOR INDIVIDUALS POOR PEOPLE POOR RURAL HOUSEHOLDS POVERTY ASSESSMENT POVERTY ESTIMATES POVERTY GAP POVERTY HEADCOUNT RATE POVERTY HEADCOUNT RATES POVERTY IMPACT POVERTY LINE POVERTY LINES POVERTY MEASURES POVERTY RATE POVERTY RATES POVERTY REDUCTION PUBLIC EMPLOYMENT PUBLIC SECTOR PURCHASING POWER RAPID GROWTH REAL GDP REGIONAL DIFFERENCES RELATIVE IMPORTANCE RELATIVE INEQUALITY RELATIVE PRICES RURAL RURAL AREAS RURAL COUNTERPARTS RURAL POPULATION SAVINGS SKILLED LABOR SOCIAL SECURITY SPATIAL DIFFERENCES SQUARED POVERTY GAP SUBSISTENCE SUBSISTENCE FARMERS UNDERESTIMATES UNEMPLOYMENT UNEMPLOYMENT RATE URBAN AREAS VALUE ADDED WAGE GROWTH WAGES WELFARE IMPACT WELFARE MEASURES Measuring the poverty and distributional impact of the global crisis for developing countries is not easy, given the multiple channels of impact and the limited availability of real-time data. Commonly-used approaches are of limited use in addressing questions like who are being affected by the crisis and by how much, and who are vulnerable to falling into poverty if the crisis deepens? This paper develops a simple micro-simulation method, modifying models from existing economic literature, to measure the poverty and distributional impact of macroeconomic shocks by linking macro projections with pre-crisis household data. The approach is then applied to Bangladesh to assess the potential impact of the slowdown on poverty and income distribution across different groups and regions. A validation exercise using past data from Bangladesh finds that the model generates projections that compare well with actual estimates from household data. The results can inform the design of crisis monitoring tools and policies in Bangladesh, and also illustrate the kind of analysis that is possible in other developing countries with similar data availability. 2012-03-19T18:38:42Z 2012-03-19T18:38:42Z 2010-03-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100316132959 http://hdl.handle.net/10986/3725 English Policy Research working paper ; no. WPS 5238 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper South Asia South Asia South Asia Asia Bangladesh