The project

The SUBSIM project is a World Bank project designed by Paolo Verme and Abdelkrim Araar. The project is financed by the World Bank and by the Poverty and Social Impact Analysis (PSIA) Trust Fund. Its main objective is to provide a set of tools for rapid distributional analyses of subsidies and simulations of subsidies reforms. The SUBSIM project includes a micro-simulation model, manuals for practitioners, preparation of notes, papers and reports on food and energy subsidies and advice to governments on subsidies reforms.

The model

SUBSIM is an automated subsidies simulation model designed to carry out rapid distributional analyses of consumers subsidies and simulations of subsidies reforms. The model estimates the impact of subsidies reforms on household welfare, poverty and inequality and the government budget with or without compensatory cash transfers. The model can estimate direct and indirect effects using household budget survey data and input-output matrixes. It can be applied to energy, food or water subsidies and accommodates linear and non-linear pricing. It produces 22 tables and 10 graphs of automated output in English or French and allows saving input data for future reference. See "Features" for a full description of SUBSIM features.

Please acknowledge its use by quoting:  Araar, Abdelkrim and Verme, Paolo  (2012), "SUBSIM: SUBsidy SIMulation Stata Package", World Bank, wired at: www.subsim.org