MPIA-10644 Poverty Impacts of Increased Openness and Fiscal Policies in a dollarized economy: A CGE-Micro Approach for Ecuador

Abstract

We propose to quantify the effects of both full trade liberalization policy and a budget-neutral value added tax system change (which seeks to compensate tariff revenue losses) on poverty and income distribution in Ecuador. We stress the study of fiscal policies that the government could tap in order to compensate the tariff revenue loss. This is a very important issue for Ecuador because this country adopted the US dollar as its currency in 2000. To study these issues we combine a reduced-form micro household income and occupational choice model with a standard single-country computable general equilibrium model (CGE) for Ecuador. We follow a sequential approach that tries to ensure consistency between the micro model and the CGE model, and that tries to capture heterogeneity and simulate the full distributional impact of the trade and tax policies. The CGE model is based on input-output and SAM data. The microsimulation model uses data from a household income and expenditure survey that includes rural and urban household data.

Members

Project leader: Sara Wong

Project researchers: Ricardo Arguello | Ketty Rivera

Journal publication

No journal publications.

Working Papers

	Title	Modified	Size	Comments	Recommendations
	Fiscal Policies and Increased Trade Openness: Poverty Impacts in Ecuador	2008-10-15	430.46KB	0	0

Policy Briefs

	Title	Modified	Size	Comments	Recommendations
	Fiscal Policies and Increased Trade Openness: Poverty Impacts in Ecuador	2009-06-09	30.19KB	0	0

Final report

	Title	Modified	Size	Comments	Recommendations
		2026-09-13	342 KB	0	0
		2008-03-03	1 MB	0	0

Proposal

	Title	Modified	Size	Comments	Recommendations
		2006-07-06	107 KB	3	0