rate to reflect changes that have taken place in the current period. The model represents a small open economy that has no influence on international markets and it is calibrated to the Social Accounting Matrix (SAM) of Ghana for the year 2005. There are three production sectors, three factors of production and nine categories of households. The model is presented in four blocks, including production and prices; institutional incomes and domestic demand equations, equilibrium conditions and macroeconomic closure and factor accumulation and allocation equations. The poverty effects of the policy simulations were carried out in the simulation model. The micro-simulation model is constructed using the expenditures of all the households in the 2005/2006 living standard survey for Ghana. In the CGE model, however, households are aggregated and do represent larger household categories identified in the survey based on expenditure and location. As the relevant data for the CGE is the 2005 SAM for Ghana, which is constructed with data from the survey, there is a direct mapping between commodities and households in the model and survey. The endogenous changes in prices, incomes and commodity consumption from each aggregate household coming from the policy to the CGE is used to adjust the level of expenditure for the corresponding disaggregated households in the survey. The incidence, depth and severity of poverty at the national level and for each household category are recalculated using the updated expenditure estimates and the changed poverty line. 3. 0 Results
rate to reflect changes that have taken place in the current period. The model represents a small open economy that has no influence on international markets and it is calibrated to the Social Accounting Matrix (SAM) of Ghana for the year 2005. There are three production sectors, three factors of production and nine categories of households. The model is presented in four blocks, including production and prices; institutional incomes and domestic demand equations, equilibrium conditions and macroeconomic closure and factor accumulation and allocation equations. The poverty effects of the policy simulations were carried out in the model. The micro-simulation model is constructed using the expenditures of all the households in the 2005/2006 living standard survey for Ghana. In the CGE model, however, households are aggregated and do represent larger household categories identified in the survey based on expenditure and location. As the relevant data for the CGE is the 2005 SAM for Ghana, which is constructed with data from the survey, there is a direct mapping between commodities and households in the model and survey. The endogenous changes in prices, incomes and commodity consumption from each aggregate household coming from the policy simulation to the CGE is used to adjust the level of expenditure for the corresponding disaggregated households in the survey. The incidence, depth and severity of poverty at the national level and for each household category are recalculated using the updated expenditure estimates and the changed poverty line. 3. 0 Results
Revised%20FOSS%20Conference%20Paper.docx