Publication

This paper provides a technical description of GEM-PIA (General Equilibrium Model for Poverty Impact Analysis). The model combines the optimizing behavior of computable general equilibrium models with the asset portfolio behavior of macro models. Because it is linked to household survey information, it also captures the socio-economic characteristics of individual households. The model can be used for counterfactual analysis of external shocks as well as various policies at the macro and meso level. The author calibrates the model to Bolivian data and illustrates it in the scenarios of a permanent rise of gas exports and a temporary devaluation.