Closing Rural-Urban MDG Gaps in Low-Income Countries : A General Equilibrium Perspective

This paper addresses policies aimed at closing the rural-urban gap for one of the Millennium Development Goals (MDGs), the under-five mortality rate (U5MR). The paper relies on the Maquette for MDG Simulations (MAMS), a computable general equilibri...

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Bibliographic Details
Main Author: Lofgren, Hans
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
GDP
TAX
Online Access:http://documents.worldbank.org/curated/en/2013/03/17487083/closing-rural-urban-mdg-gaps-low-income-countries-general-equilibrium-perspective
http://hdl.handle.net/10986/13133
id okr-10986-13133
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO HEALTH SERVICES
ACCOUNTING
AGRICULTURAL EMPLOYMENT
AGRICULTURAL LAND
AGRICULTURAL SERVICES
AGRICULTURE
BALANCE OF PAYMENTS
BANK POLICY
BASE YEAR
BASIC SANITATION
BUDGET CONSTRAINT
BUDGET CONSTRAINTS
CAPITAL ACCOUNT
CAPITAL STOCK
CAPITAL STOCKS
CAPITAL USE
CHECKS
COMMODITY PRICES
CONSUMPTION INCREASES
CONSUMPTION SMOOTHING
DEBT
DEBT STOCKS
DEMAND CURVES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICIES
DEVELOPMENT POLICY
DISCRIMINATION
DISPOSABLE INCOME
DOMESTIC BORROWING
DOMESTIC CURRENCY
DOMESTIC MARKET
DOMESTIC MARKETS
ECONOMETRIC ANALYSIS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC SYSTEMS
EDUCATIONAL ATTAINMENT
ELASTICITY
ENVIRONMENTAL IMPACT
EQUILIBRIUM
EXPENDITURE
EXPORTS
FACTOR DEMAND
FINANCES
FISCAL POLICIES
FISCAL POLICY
FOREIGN CURRENCY
FOREIGN DEBT
FOREIGN DEBTS
FOREIGN DIRECT INVESTMENT
FOREIGN EXCHANGE
FOREIGN INTEREST
FULL EMPLOYMENT
FUNCTIONAL FORMS
GDP
GDP PER CAPITA
GINI COEFFICIENT
GLOBAL ECONOMY
GOVERNMENT BORROWING
GOVERNMENT BUDGET
GOVERNMENT CAPACITY
GOVERNMENT DEBT
GOVERNMENT DEBTS
GOVERNMENT INVESTMENT
GOVERNMENT POLICIES
GOVERNMENT SPENDING
GROSS NATIONAL SAVINGS
GROWTH RATE
HEALTH OUTCOMES
HEALTH POLICY
HEALTH SECTOR
HEALTH SERVICES
HEALTH WORKERS
HOUSEHOLD BUDGET
HOUSEHOLD CONSUMPTION
HOUSEHOLD INCOMES
HOUSEHOLD SAVINGS
HOUSEHOLD SURVEY
HUMAN DEVELOPMENT
INCOME
INCOME DISTRIBUTION
INCOME LEVELS
INEQUALITY
INTEREST INCOME
INTEREST PAYMENTS
INTERNAL RATES OF RETURN
INTERNATIONAL BANK
INVESTMENT FINANCING
INVESTMENT RATES
LABOR FORCE
LABOR MARKET
LACK OF SANITATION
LACK OF WATER
LEVEL OF EDUCATION
LEVELS OF EDUCATION
LIVING CONDITIONS
LOCAL CURRENCY
LOW-INCOME COUNTRIES
LOW-INCOME COUNTRY
MARKET CONSTRAINTS
MARKET PRICES
MATERNAL MORTALITY
MEDICINES
MIGRATION
MILLENNIUM DEVELOPMENT GOAL
MILLENNIUM DEVELOPMENT GOALS
MORTALITY
MORTALITY RATE
NATURAL RESOURCE
OPPORTUNITY COSTS
PAYMENT FLOWS
POLICY ANALYSIS
POLICY DISCUSSIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POOR
POOR PEOPLE
POPULATION GROUPS
POVERTY DATA
POVERTY INDICATORS
POVERTY RATES
POVERTY REDUCTION
PRICE CHANGES
PRICE LEVELS
PRIMARY EDUCATION
PRIVATE CAPITAL
PRIVATE CAPITAL STOCKS
PRIVATE INVESTMENT
PRIVATE TRANSFERS
PRODUCTIVITY GROWTH
PROFIT MAXIMIZATION
PROFIT RATE
PROGRESS
PURCHASING POWER
RATE OF POPULATION GROWTH
REAL EXCHANGE RATE
REMITTANCES
RESEARCH PROGRAM
RESPECT
RETURNS
RURAL
RURAL AREAS
RURAL GROWTH
RURAL HEALTH
RURAL HOUSEHOLD
RURAL HOUSEHOLDS
RURAL MIGRATION
RURAL POPULATION
RURAL POPULATIONS
RURAL POVERTY
RURAL POVERTY RATE
RURAL POVERTY RATES
RURAL SERVICE
RURAL WATER
SAFE WATER
SANITATION
SAVINGS
SAVINGS RATES
SCHOOL ATTENDANCE
SERVICE DELIVERY
SERVICE PROVISION
STOCKS
STRUCTURAL CHANGE
SUPPLY CURVE
SUPPLY CURVES
TARGETING
TAX
TERTIARY EDUCATION
TOTAL FACTOR PRODUCTIVITY
TRADE POLICY
TRANSPORTATION
TRUST FUND
UNEMPLOYMENT
UNEMPLOYMENT RATE
URBAN AREAS
URBAN BIAS
URBAN DEVELOPMENT
URBAN POPULATION
URBAN POPULATIONS
URBAN POVERTY
URBANIZATION
VALUE ADDED
WAGES
WORKERS
spellingShingle ACCESS TO HEALTH SERVICES
ACCOUNTING
AGRICULTURAL EMPLOYMENT
AGRICULTURAL LAND
AGRICULTURAL SERVICES
AGRICULTURE
BALANCE OF PAYMENTS
BANK POLICY
BASE YEAR
BASIC SANITATION
BUDGET CONSTRAINT
BUDGET CONSTRAINTS
CAPITAL ACCOUNT
CAPITAL STOCK
CAPITAL STOCKS
CAPITAL USE
CHECKS
COMMODITY PRICES
CONSUMPTION INCREASES
CONSUMPTION SMOOTHING
DEBT
DEBT STOCKS
DEMAND CURVES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICIES
DEVELOPMENT POLICY
DISCRIMINATION
DISPOSABLE INCOME
DOMESTIC BORROWING
DOMESTIC CURRENCY
DOMESTIC MARKET
DOMESTIC MARKETS
ECONOMETRIC ANALYSIS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC SYSTEMS
EDUCATIONAL ATTAINMENT
ELASTICITY
ENVIRONMENTAL IMPACT
EQUILIBRIUM
EXPENDITURE
EXPORTS
FACTOR DEMAND
FINANCES
FISCAL POLICIES
FISCAL POLICY
FOREIGN CURRENCY
FOREIGN DEBT
FOREIGN DEBTS
FOREIGN DIRECT INVESTMENT
FOREIGN EXCHANGE
FOREIGN INTEREST
FULL EMPLOYMENT
FUNCTIONAL FORMS
GDP
GDP PER CAPITA
GINI COEFFICIENT
GLOBAL ECONOMY
GOVERNMENT BORROWING
GOVERNMENT BUDGET
GOVERNMENT CAPACITY
GOVERNMENT DEBT
GOVERNMENT DEBTS
GOVERNMENT INVESTMENT
GOVERNMENT POLICIES
GOVERNMENT SPENDING
GROSS NATIONAL SAVINGS
GROWTH RATE
HEALTH OUTCOMES
HEALTH POLICY
HEALTH SECTOR
HEALTH SERVICES
HEALTH WORKERS
HOUSEHOLD BUDGET
HOUSEHOLD CONSUMPTION
HOUSEHOLD INCOMES
HOUSEHOLD SAVINGS
HOUSEHOLD SURVEY
HUMAN DEVELOPMENT
INCOME
INCOME DISTRIBUTION
INCOME LEVELS
INEQUALITY
INTEREST INCOME
INTEREST PAYMENTS
INTERNAL RATES OF RETURN
INTERNATIONAL BANK
INVESTMENT FINANCING
INVESTMENT RATES
LABOR FORCE
LABOR MARKET
LACK OF SANITATION
LACK OF WATER
LEVEL OF EDUCATION
LEVELS OF EDUCATION
LIVING CONDITIONS
LOCAL CURRENCY
LOW-INCOME COUNTRIES
LOW-INCOME COUNTRY
MARKET CONSTRAINTS
MARKET PRICES
MATERNAL MORTALITY
MEDICINES
MIGRATION
MILLENNIUM DEVELOPMENT GOAL
MILLENNIUM DEVELOPMENT GOALS
MORTALITY
MORTALITY RATE
NATURAL RESOURCE
OPPORTUNITY COSTS
PAYMENT FLOWS
POLICY ANALYSIS
POLICY DISCUSSIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POOR
POOR PEOPLE
POPULATION GROUPS
POVERTY DATA
POVERTY INDICATORS
POVERTY RATES
POVERTY REDUCTION
PRICE CHANGES
PRICE LEVELS
PRIMARY EDUCATION
PRIVATE CAPITAL
PRIVATE CAPITAL STOCKS
PRIVATE INVESTMENT
PRIVATE TRANSFERS
PRODUCTIVITY GROWTH
PROFIT MAXIMIZATION
PROFIT RATE
PROGRESS
PURCHASING POWER
RATE OF POPULATION GROWTH
REAL EXCHANGE RATE
REMITTANCES
RESEARCH PROGRAM
RESPECT
RETURNS
RURAL
RURAL AREAS
RURAL GROWTH
RURAL HEALTH
RURAL HOUSEHOLD
RURAL HOUSEHOLDS
RURAL MIGRATION
RURAL POPULATION
RURAL POPULATIONS
RURAL POVERTY
RURAL POVERTY RATE
RURAL POVERTY RATES
RURAL SERVICE
RURAL WATER
SAFE WATER
SANITATION
SAVINGS
SAVINGS RATES
SCHOOL ATTENDANCE
SERVICE DELIVERY
SERVICE PROVISION
STOCKS
STRUCTURAL CHANGE
SUPPLY CURVE
SUPPLY CURVES
TARGETING
TAX
TERTIARY EDUCATION
TOTAL FACTOR PRODUCTIVITY
TRADE POLICY
TRANSPORTATION
TRUST FUND
UNEMPLOYMENT
UNEMPLOYMENT RATE
URBAN AREAS
URBAN BIAS
URBAN DEVELOPMENT
URBAN POPULATION
URBAN POPULATIONS
URBAN POVERTY
URBANIZATION
VALUE ADDED
WAGES
WORKERS
Lofgren, Hans
Closing Rural-Urban MDG Gaps in Low-Income Countries : A General Equilibrium Perspective
relation Policy Research Working Paper;No. 6390
description This paper addresses policies aimed at closing the rural-urban gap for one of the Millennium Development Goals (MDGs), the under-five mortality rate (U5MR). The paper relies on the Maquette for MDG Simulations (MAMS), a computable general equilibrium model, applied to the database of an archetypical low-income country. The scenarios, which focus on the period 2013-2030, include a "business-as-usual" base scenario and policy scenarios that analyze efforts to raise the rural population up to the urban level in terms of health services or the under-five mortality rate. The policy scenarios are implemented with alternative sources of fiscal space. The results indicate that, if current trends continue, considerable progress for MDGs should be expected by 2030. If the government raises rural health services, then the decline in the rural U5MR would accelerate. If most additional resources come from foreign grants or government efficiency gains, then the repercussions for other development indicators, including poverty reduction, would be positive. However, if most additional resources are from domestic taxes or borrowing, then progress for the rural U5MR would come at the expense of less progress for other indicators. Sensitivity analysis shows that these qualitative findings are robust to different values for two parameters related to initial rural-urban cost and service gaps. However, quantitatively, the results depend on the values of these two parameters, implying that individual country characteristics strongly influence the fiscal-space requirements for and consequences of equalizing rural-urban MDG services and outcomes.
format Publications & Research :: Policy Research Working Paper
author Lofgren, Hans
author_facet Lofgren, Hans
author_sort Lofgren, Hans
title Closing Rural-Urban MDG Gaps in Low-Income Countries : A General Equilibrium Perspective
title_short Closing Rural-Urban MDG Gaps in Low-Income Countries : A General Equilibrium Perspective
title_full Closing Rural-Urban MDG Gaps in Low-Income Countries : A General Equilibrium Perspective
title_fullStr Closing Rural-Urban MDG Gaps in Low-Income Countries : A General Equilibrium Perspective
title_full_unstemmed Closing Rural-Urban MDG Gaps in Low-Income Countries : A General Equilibrium Perspective
title_sort closing rural-urban mdg gaps in low-income countries : a general equilibrium perspective
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2013/03/17487083/closing-rural-urban-mdg-gaps-low-income-countries-general-equilibrium-perspective
http://hdl.handle.net/10986/13133
_version_ 1764422774911139840
spelling okr-10986-131332021-04-23T14:03:07Z Closing Rural-Urban MDG Gaps in Low-Income Countries : A General Equilibrium Perspective Lofgren, Hans ACCESS TO HEALTH SERVICES ACCOUNTING AGRICULTURAL EMPLOYMENT AGRICULTURAL LAND AGRICULTURAL SERVICES AGRICULTURE BALANCE OF PAYMENTS BANK POLICY BASE YEAR BASIC SANITATION BUDGET CONSTRAINT BUDGET CONSTRAINTS CAPITAL ACCOUNT CAPITAL STOCK CAPITAL STOCKS CAPITAL USE CHECKS COMMODITY PRICES CONSUMPTION INCREASES CONSUMPTION SMOOTHING DEBT DEBT STOCKS DEMAND CURVES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICIES DEVELOPMENT POLICY DISCRIMINATION DISPOSABLE INCOME DOMESTIC BORROWING DOMESTIC CURRENCY DOMESTIC MARKET DOMESTIC MARKETS ECONOMETRIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC SYSTEMS EDUCATIONAL ATTAINMENT ELASTICITY ENVIRONMENTAL IMPACT EQUILIBRIUM EXPENDITURE EXPORTS FACTOR DEMAND FINANCES FISCAL POLICIES FISCAL POLICY FOREIGN CURRENCY FOREIGN DEBT FOREIGN DEBTS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INTEREST FULL EMPLOYMENT FUNCTIONAL FORMS GDP GDP PER CAPITA GINI COEFFICIENT GLOBAL ECONOMY GOVERNMENT BORROWING GOVERNMENT BUDGET GOVERNMENT CAPACITY GOVERNMENT DEBT GOVERNMENT DEBTS GOVERNMENT INVESTMENT GOVERNMENT POLICIES GOVERNMENT SPENDING GROSS NATIONAL SAVINGS GROWTH RATE HEALTH OUTCOMES HEALTH POLICY HEALTH SECTOR HEALTH SERVICES HEALTH WORKERS HOUSEHOLD BUDGET HOUSEHOLD CONSUMPTION HOUSEHOLD INCOMES HOUSEHOLD SAVINGS HOUSEHOLD SURVEY HUMAN DEVELOPMENT INCOME INCOME DISTRIBUTION INCOME LEVELS INEQUALITY INTEREST INCOME INTEREST PAYMENTS INTERNAL RATES OF RETURN INTERNATIONAL BANK INVESTMENT FINANCING INVESTMENT RATES LABOR FORCE LABOR MARKET LACK OF SANITATION LACK OF WATER LEVEL OF EDUCATION LEVELS OF EDUCATION LIVING CONDITIONS LOCAL CURRENCY LOW-INCOME COUNTRIES LOW-INCOME COUNTRY MARKET CONSTRAINTS MARKET PRICES MATERNAL MORTALITY MEDICINES MIGRATION MILLENNIUM DEVELOPMENT GOAL MILLENNIUM DEVELOPMENT GOALS MORTALITY MORTALITY RATE NATURAL RESOURCE OPPORTUNITY COSTS PAYMENT FLOWS POLICY ANALYSIS POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POOR POOR PEOPLE POPULATION GROUPS POVERTY DATA POVERTY INDICATORS POVERTY RATES POVERTY REDUCTION PRICE CHANGES PRICE LEVELS PRIMARY EDUCATION PRIVATE CAPITAL PRIVATE CAPITAL STOCKS PRIVATE INVESTMENT PRIVATE TRANSFERS PRODUCTIVITY GROWTH PROFIT MAXIMIZATION PROFIT RATE PROGRESS PURCHASING POWER RATE OF POPULATION GROWTH REAL EXCHANGE RATE REMITTANCES RESEARCH PROGRAM RESPECT RETURNS RURAL RURAL AREAS RURAL GROWTH RURAL HEALTH RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL MIGRATION RURAL POPULATION RURAL POPULATIONS RURAL POVERTY RURAL POVERTY RATE RURAL POVERTY RATES RURAL SERVICE RURAL WATER SAFE WATER SANITATION SAVINGS SAVINGS RATES SCHOOL ATTENDANCE SERVICE DELIVERY SERVICE PROVISION STOCKS STRUCTURAL CHANGE SUPPLY CURVE SUPPLY CURVES TARGETING TAX TERTIARY EDUCATION TOTAL FACTOR PRODUCTIVITY TRADE POLICY TRANSPORTATION TRUST FUND UNEMPLOYMENT UNEMPLOYMENT RATE URBAN AREAS URBAN BIAS URBAN DEVELOPMENT URBAN POPULATION URBAN POPULATIONS URBAN POVERTY URBANIZATION VALUE ADDED WAGES WORKERS This paper addresses policies aimed at closing the rural-urban gap for one of the Millennium Development Goals (MDGs), the under-five mortality rate (U5MR). The paper relies on the Maquette for MDG Simulations (MAMS), a computable general equilibrium model, applied to the database of an archetypical low-income country. The scenarios, which focus on the period 2013-2030, include a "business-as-usual" base scenario and policy scenarios that analyze efforts to raise the rural population up to the urban level in terms of health services or the under-five mortality rate. The policy scenarios are implemented with alternative sources of fiscal space. The results indicate that, if current trends continue, considerable progress for MDGs should be expected by 2030. If the government raises rural health services, then the decline in the rural U5MR would accelerate. If most additional resources come from foreign grants or government efficiency gains, then the repercussions for other development indicators, including poverty reduction, would be positive. However, if most additional resources are from domestic taxes or borrowing, then progress for the rural U5MR would come at the expense of less progress for other indicators. Sensitivity analysis shows that these qualitative findings are robust to different values for two parameters related to initial rural-urban cost and service gaps. However, quantitatively, the results depend on the values of these two parameters, implying that individual country characteristics strongly influence the fiscal-space requirements for and consequences of equalizing rural-urban MDG services and outcomes. 2013-04-10T19:02:25Z 2013-04-10T19:02:25Z 2013-03 http://documents.worldbank.org/curated/en/2013/03/17487083/closing-rural-urban-mdg-gaps-low-income-countries-general-equilibrium-perspective http://hdl.handle.net/10986/13133 English en_US Policy Research Working Paper;No. 6390 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research