Meno di un minuto

This month’s FEEM-IEFE Seminar discusses the development of a non-behavioural microsimulation model to assess a policy reducing fossil fuel subsidies in Indonesia. By introducing the distributional dimension in a classical CGE framework, microsimulation models are particularly suited to assess inequality and poverty changes induced by a shock. Results show that, despite an envisaged limited decrease of fossil fuel subsidy, such a reform may have a non-negligible impact on welfare.

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