A Standard Bank-Fund Projection Framework with CGE Features

We present a SAM-methodology for integrating simple macroeconomic and CGE models, which is applied to integrate standard versions of the merged and static CGE model frameworks. The integrated model accounts for relative prices and income distribution. A set of integrated model projections is compared with a set of merged model projections. While relative price changes generally benefit poor rural households, in particular, the accompanying capital deepening of the economy benefits urban households in relative terms. The integrated model projections imply that the previous set of merged model projections overlook an undesirable - but likely -distributional impact.