This paper highlights the idea of combining CGE modeling with a micro-household model (micro-simulation) to generate a convergent solution, thus providing the basis to perform counterfactual analysis of trade and fiscal policies, and their impact on poverty. In recent years, a number of papers...

We have observed a flourishing literature in recent years on the use of CGE models to perform poverty and income distribution analysis. In this context two approaches have emerged and no rigorous comparison of the two approaches has been done yet. The first approach is the traditional...

In this paper, we provide an overview of approaches used to model income distribution and poverty in CGE models. CGE models have started to use income distribution functional forms such as the lognormal, Pareto, beta distribution and Kernel non-parametric methods to apply GFT poverty indices....