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Development policy analysis with MAMS

 About the program

 Key resources

 Country applications

Project note 

Core team and contacts 


 

The World Bank (DEC) has developed a tool for economy-wide, country-level analysis of medium- and long-run development policies, including strategies for reducing poverty and achieving the Millennium Development Goals (MDGs). The tool – named MAMS (Maquette for MDG Simulations) – is a dynamic Computable General Equilibrium (CGE) model that has been extended to cover the generation of outcomes in terms of growth, MDGs, and the educational make-up of the labor force, as well as the interaction of these outcomes with other aspects of economic performance.
 The government policies that are considered include:
  • spending: its level and allocation across different areas (including education, health, and infrastructure);
  • financing: policies for taxation, domestic and foreign borrowing, and foreign aid.

Economic performance is measured by the evolution of:

  • poverty and other MDG targets
  • macro indicators:
    • GDP (split into private and government consumption and investment; exports; imports);
    • the composition of the government budget, the balance of payments, and the savings-investment balance;
    • total factor productivity;
    • domestic and foreign debt stocks
  • sectoral structure of production, employment, incomes, and trade
  • the labor market: unemployment; educational composition of the labor force;

MAMS is a flexible tool that can be run in different versions that differ in data needs. For example, for analysis of macro issues, it is sufficient to use a version with minimal data needs; analysis of MDG strategies requires a version with additional sectoral disaggregation and a more detailed database.

     




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