Modeling Public Policies in Latin America and the Caribbean

image of Modeling Public Policies in Latin America and the Caribbean

The Inter-American Development Bank (IDB) and the Economic Commission for Latin America and the Caribbean (ECLAC) have formed a partnership to promote a regional network of computable general equilibrium (CGE) modellers that facilitates the exchange of analytical findings, techniques and data, with the ultimate objective of better serving policymakers in policy formulation. The regional meetings of CGE modellers, held annually in a different country of the region, have been instrumental in promoting interregional transfer of analytical technologies and in bringing the region closer to international best practices. This book contains a selection of studies discussed in past annual regional meetings on modelling.



Fiscal policies and increased trade openness: Poverty impacts in Ecuador

We use a combined micro-simulation and computable general equilibrium model of the Ecuadorian economy to measure the impact on poverty of changes in fiscal policy in response to trade openness in Ecuador. This study is part of a growing branch of the empirical economics literature that seeks to examine the effects on poverty in countries that have opened their markets to global competition. We also study fiscal policies that the Government could use to compensate for tariff revenue loss. Analysing the impact of changes in trade and fiscal policies on poverty is a very important issue for a country such as Ecuador —a dollarized economy where poverty rates are high, particularly in the rural sector.


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