The paper provides basic guidelines and tools for simulating subsidy reforms with Stata using a single cross-section survey. Simulations are discussed under a partial equilibrium and medium-term framework using a marginal approach. The paper distinguishes between single priced products, such as fuel or bread, and multiple priced products, such as household utilities. Part I provides basic instructions for carrying out subsidy analyses. Part II outlines economic theory and formulae for the two types of products considered. Part III illustrates the use of the Stata codes, which are downloadable from the Internet.
Details
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Author
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Document Date
2012/07/01
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Document Type
Policy Research Working Paper
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Report Number
WPS6148
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Volume No
1
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Total Volume(s)
1
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Country
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Region
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Disclosure Date
2012/07/01
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Disclosure Status
Disclosed
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Doc Name
Reforming subsidies : a tool-kit for policy simulations
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Keywords
government revenue;household expenditure;household welfare;price change;demand elasticity;computable general equilibrium model;marginal rate of substitution;efficiency of public spending;cross-price elasticity of demand;impact of price changes;incidence analysis;consumer price index;price shock;increase in prices;price of good;elimination of subsidy;types of good;expenditure on good;cost of subsidy;price schedule;savings and investment;reform household;quality of outputs;level of consumption;form of subsidies;distribution of subsidies;Poverty & Inequality;parameter of interest;level of change;impact of subsidies;household consumption survey;change in welfare;value added tax;change in prices;effect of price;impact analysis;budget revenue;ratio of prices;relative price change;absence of subsidy;high tax rate;price of rice;longitudinal panel data;cost of production;change in poverty;low tax rate;types of consumer;reduction in consumption;sequence of events;basket of good;household expenditure data;speed of analysis;increase in inflation;comments and feedback;price for electricity;collection of information;incidence of subsidies;impact of reforms;household total expenditure;water and electricity;basic food item;combination of factor;budget constraint;marginal price;subsidized products;household survey;behavioral effect;partial equilibrium;budget line;budget cut;inflation adjustment;real expenditure;nominal budget;electricity subsidies;long-term effect;tariff structure;household budget;product analysis;simulation model;behavioral change;data requirement;
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Citation
Araar,Abdelkrim;Verme,Paolo;
Reforming subsidies : a tool-kit for policy simulations (English). Policy Research working paper ; no. WPS 6148 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/892071468331042804/Reforming-subsidies-a-tool-kit-for-policy-simulations