Assessing Economy-Wide Effects
2018
This paper explores the use of economy-wide models to assess the impact of policies implemented in low- and middle-income countries. Such models include several distinct approaches, including input-output models, macroeconometric models, hybrid input-output-macroeconometric models, and general equilibrium models. Recent advances allow increasing incorporation of non-market welfare considerations into these tools. This development in turn facilitates a much better understanding of how health and environmental interventions affect metrics of great interest to policy-makers: for example, overall gross domestic product (GDP) growth, labor productivity, sectoral patterns of output, and distribution of income and welfare among populations. This paper suggests that dynamic economy wide-modeling tools are best applied when both a social accounting matrix and data to characterize the population affected by the intervention are available; when effects are large; when effects are cumulative over time; and when inter-sectoral implications are likely.
Assessing Economy-Wide Effects
Source:
Strzepek KM, Amanya C, Neumann JE. Assessing the Economy-Wide Effects of Health and Environmental Interventions in Support of Benefit-Cost Analysis. Guidelines for Benefit-Cost Analysis Project Working Paper No. 4, 2018. https://media.repository.chds.hsph.harvard.edu/static/filer_public/58/8b/588b8b83-7ea1-4701-a12e-0f9b01f1b8b0/2018_strzepek_envirhlth_intervent_bca_prj_wp_34.pdf