A Bank-Fund projection framework with CGE features

Abstract: In this paper, we present a SAM-based methodology for integrating standard CGE features with a macroeconomic World Bank–International Monetary Fund (IMF) modelling framework. The resulting macro–micro framework is based on optimising agents, but it retains key features from the macroeconomic model. We highlight that the integrated model is amenable to analyses of issues regarding poverty and income distribution, and present an application where the model is used to study a stylized macroeconomic model growth scenario for Mozambique. The integrated model projections demonstrate that the macroeconomic growth scenario overlooks an undesirable distributional impact. The integrated macroeconomic and CGE model framework is in conclusion identified as a superior modelling tool for analysing growth scenarios. [Copyright &y& Elsevier]