Abstract

This article compares the results from two models developed to explore the relationship between policy instruments and income distribution in developing countries. The BACHUE model is a long-run economic-demographic model of the Philippines and the Adelman-Robinson model is a medium-term computable general equilibrium model of Korea. In spite of differences in focus and design, the two models yield similar conclusions. Although the size distribution of income is quite stable and hard to change, it is possible to achieve egalitarian development strategies with integrated, comprehensive sets of policies. However, the distribution of income by socioeconomic groups (an extended functional distribution) is much more sensitive to policy interventions, indicating the need to integrate economic and political analysis of distribution policies. In any case, a general equilibrium analysis is important since indirect effects are often crucial in determining the ultimate impact of a policy intervention.

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