Cite as: M. Bussolo, R. De Hoyos, D. Medvedev; 2010; Economic growth and income distribution: linking macro- economic models with household survey data at the global level; International Journal of Microsimulation; 3(1); 92–103. doi: 10.34196/ijm.00027
Abstract
This paper describes in detail the analytical structure of the Global Income Distribution Dynamics (GIDD) model, a global macro-micro modelling framework, and provides some examples of its recent applications. GIDD is the first macro-micro global simulation model focused on long-term, global growth and distribution dynamics. GIDD has been applied in analyzing the effects of multilateral trade liberalization or mitigation of climate change damages, among others. It also explicitly considers long term time horizons during which changes in the demographic structure are crucial components of both growth and distribution dynamics. The challenges of assessing plausible worldwide distributional implications of growth, large shocks, and policy changes are daunting. Although addressing these issues in a macro-micro framework is subject to great uncertainty, a clearly superior alternative is not yet available.
This article contains 3 figures and 2 tables.
Figures
Figure 1. GIDD methodological framework.Figure 2. Nested structure of production in LINKAGE.Figure 3. Global incidence of climate change damages.
Tables
Table 1. Global Income Inequality.
Index
2000
2030
Dispersion Only
Conver-gence Only
Gini
0.672
0.626
0.673
0.625
Theil
0.905
0.749
0.904
0.749
Mean Log Deviation
0.884
0.764
0.893
0.759
Source: Authors’ own calculations using data from GIDD.
Table 2. Poverty is higher among agricultural households even if their incomes are less unequal.
