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Abstract

The Global Income Distribution Dynamics is a top-down macro-micro simulation modeling framework used to generate counterfactual income distributions based on changes in economywide macroeconomic conditions. This paper documents latest innovations in the GIDD model. While it remains focused on the microeconomic underpinnings, this paper is intended to be used by macroeconomic modelers interested in adding an extra distributional modeling layer to simulations. Better coverage of harmonized household surveys permitted a more consistent treatment of macroeconomic inputs and allow for increased detail in the microeconomic model. Macro inputs from a recursive dynamic general equilibrium model and GIDD simulations suggest progressive distributional effects from increased female labor participation and human capital accumulation in Turkey. Possible future extensions to the modeling framework are discussed.

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