Evaluation of Measures to Combat Poverty Based on Global Multi-Country Hybrid Econometric Model

Abstract

On the basis of the developed quarterly Fair multi-country macroeconomic model, the annual International Monetary Fund multi-country econometric model and the development of two interaction interfaces between these models a hybrid multi-country econometric model was built (hereinafter referred to as Model) that describes the world economy as the functioning of the interacting economies of 62 countries and the rest of the world. The conditions for transferring the results of computational experiments on the basis of the Model to practice by methods of the parametric control theory and the known methods of testing the results of building econometric models were evaluated. A number of problems of parametric control aimed at maximizing gross domestic product per capita in purchasing power parity at the levels of: a single country, regional union, the world and convergence in terms of the rate of economic growth between the countries of the world; regional economic union have been set and solved using monetary, currency and fiscal policy instruments. It is shown the effectiveness of coordinated macroeconomic policy at the world and regional union levels.