Explaining the Evolution of Poverty: The Case of Mozambique

We provide a comprehensive approach for analyzing the evolution of poverty using Mozambique as a case study. Bringing together data from disparate sources, we develop a novel back-casting framework that links a dynamic computable general equilibrium model to a micro-simulation poverty module. This framework provides a new approach to explaining and decomposing the evolution of poverty, as well as to examining rigorously the coherence between poverty, economic growth, and inequality outcomes. Finally, various simple but useful and rarely-applied approaches to considering regional changes in poverty rates are presented.