Reducing Poverty Through Subsidies: Simulation of Fuel Subsidy Diversion to Non-food  

Oleh:

Maipita, Indra ; Hermawan, Wawan ; Fitrawaty

Jenis: Article from Journal - ilmiah nasional - terakreditasi DIKTI
Dalam koleksi: Bulletin of Monetary Economics and Banking (ex: Buletin Ekonomi Moneter dan Perbankan) vol. 14 no. 4 (Apr. 2012), page 369-388.
Topik: Subsidy; poverty; computable general equilibrium; AGEFIS
Fulltext: IndraMaipitaWawanHermawanFitrawaty_dv.pdf (146.76KB)

Isi artikel

This paper analyzes the impact of fuel subsidy diversion to Non-Food Crops sector on income levels, using AGEFIS; a Computable General Equilibrium model. Then we proceed to apply the Foster- Greer-Thorbecke (FGT) index to measure the indicators of poverty (head count index, poverty gap index and poverty severity index). The simulation result shows the fuel subsidy diversion to Non-Food Crops sector provides a positive impact on increasing household incomes and poverty reduction. Furthermore, the fuel subsidy diversion to Non-Food Crops sector reduces the poverty of rural household, larger than the urban households.

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