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Book
Building Macro SAMs from Cross-Country Databases : Method and Matrices for 133 Countries
Authors: ---
Year: 2017 Publisher: Washington, District of Colombia : World Bank,

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Abstract

Social accounting matrices (SAMs) are the key data input for computable general equilibrium (CGE) models. After a brief introduction to SAMs, this paper presents a method and related computer program for constructing macro SAMs from cross-country databases. The method is demonstrated in an appendix where it is used to build such a SAM for Guinea in Excel. With the help of the program, macro SAMs were built for 133 countries, including many low-income and/or fragile countries. The SAMs and the code for the program are available in electronic form. A companion paper presents a CGE model with a user-friendly interface for which such SAMs provide the bulk of the data needed for macro applications.


Book
A Proximity-Based Approach to Labor Mobility in CGE Models with an Application to Sub-Saharan Africa
Authors: ---
Year: 2017 Publisher: Washington, D.C. : The World Bank,

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The ease with which workers can move between sectors has a strong impact on the effects on labor markets of shocks such as changes in world prices or migration flows. This paper introduces an approach to labor mobility with frictions under which worker capabilities (their efficiencies in different sectors) depend on their sector affiliation. If workers in sector a move to sector a', their efficiency shortfall due to a capability misfit compared to what is needed in a' (and possessed by workers already in a') is measured by a proximity parameter, 0 ? proxa,a' ? 1. If proxa, a' < 1, the efficient quantity reaching a' is below the physical quantity. In this setting, profit-maximizing producers are willing to pay the same wage per efficiency unit irrespective of worker origin and thus pay less efficient workers a lower wage per physical unit. This approach to labor mobility is tested in a static CGE model that is applied to an illustrative sub-Saharan African dataset with sector proximities defined using the approach of the product-space literature. Simulations of positive export price shocks show that, the higher the proximities, the stronger the labor reallocation and the welfare gains.


Book
Achieving the MDGs in Yemen : An Assessment
Authors: --- --- --- ---
Year: 2012 Publisher: Washington, D.C., The World Bank,

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Once the current political crisis in Yemen has been resolved, it will be ever more urgent to speed up progress, including Millennium Development Goal (MDG) achievements. Drawing on simulations with the Maquette for MDG Simulations (MAMS), a model for strategy analysis, and a linked microsimulation model, this paper addresses Yemen's MDG challenges. A first simulation set considers scaled-up government actions with the aim of fully achieving the 2015 international MDG targets with required additional financing from foreign or domestic sources. The main finding is sobering but not surprising: given the required expansion of MDG-related services, on-time achievement of key MDG targets does not appear to have been a realistic objective even if the government, hypothetically, would have expanded services with grant aid financing starting from 2005; macroeconomic stability, government efficiency, and the production of tradables would all have suffered due to the size of spending and aid increases as well as the resulting real exchange rate appreciation. The results suggest that countries, instead of relying on international targets, should set MDG targets grounded in their own reality. In light of these results, the authors designed a second simulation set that is focused on the remaining period up to 2015, and on what may be feasible once the current conflict has been settled. The simulations introduce moderate increases in foreign aid or government allocative efficiency. The government uses the resulting fiscal space for spending and service expansion in infrastructure and human development without losses in productive efficiency. The results suggest that, under these conditions, substantial improvements could still be achieved.

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