Session 10.1 Levy Macro-Micro Model (Part 2): Macro modeling of Policy Interventions
Instructors: Ajit Zacharias and Thomas Masterson
Topics
We discuss the specification and estimation of our macroeconomic model. Our model is based on the social accounting matrix (SAM) for Ghana (2013). We outline the changes we made to the standard specification to incorporate the preponderance of informal activities in Ghana. Another modification consists of integrating the early childhood education activities as a sector in the SAM. The other crucial aspect of specification pertains to the closure rules of the model. In effect, the closure rules indicate the theoretical premise of the model. For this reason, we contrast our heterodox specification with the mainstream marginalist specification. Finally, we will present our estimates of the macroeconomic impacts of the additional public expenditures required for the policy interventions.
Main Reading
Zacharias et al. (2019), Chapter 3, Sections 3.1, 3.2, 3.3.1,3.4, 3.5, 3.8.1
Supplementary Reading
Taylor, L. (Ed.). (1990). Socially relevant policy analysis: Structuralist computable general equilibrium models for the developing world. MIT Press., Sections from Chapter 1: 1.1-1.4
Session 10.2 Overview and Policy Interventions
Instructors: Ajit Zacharias and Thomas Masterson
Topics
We provide the context and motivation for the model by briefly discussing relevant prior literature. We then turn to an overview of the macro-micro model. We also specify the policy interventions—the complete repair of all roads in poor condition and raising the enrollment rate for 0–3-year-olds to 31 percent. The challenge of data requirements to model the interventions and ways to overcome them will also be outlined.
Main Reading
Zacharias et al. (2019), Chapter 1 and Section 2.1 from Chapter 2
Supplementary Reading
Fontana, M., & Elson, D. (2014). Public policies on water provision and early childhood education and care (ECEC): Do they reduce and redistribute unpaid work? Gender & Development, 22(3), 459– 474. https://doi.org/10.1080/13552074.2014.963320