Models of Conditional Cash Transfer Programs: A Computable General Equilibrium Model
Michael P. Barry

Conditional Cash Transfers (CCT) can be implemented in developing countries to both provide incomes to poor families and to encourage school attendance. The investment in human capital can increase long term labor productivity and increase economic growth. This paper employs a computable general equilibrium model to quantify the effects of increased productivity in Barazil and Mexico after introduction of CCT programs. A CGE model is a multi-sector, multi-regional system of simultaneous equations, covering market equilbrium in product, factor, and financial markets. The results of the model show a significant increaese in economic growth for both Mexico and Brazil.

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