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General equilibrium models for development policy (English)

This comprehensive survey of multisector, economy-wide planning models weighs their power to address issues of trade, distribution, growth, and structural change. The authors combine theoretical discussion of the properties of applied equilibrium models with numerical applications to particular countries, and problems. The models consider ranges from input-output and linear programming to the more recent nonlinear computable general equilibrium models. The authors examine how these models can be used to measure growth and structural change, to select an appropriate foreign exchange regimen, and to evaluate the impact of alternative development strategies on the distribution of income. The empirical applications draw on the experience of particular countries, and comparisons among countries to demonstrate how such models provide a useful framework for policy analysis. Particular attention is given to the difficulties of formulating plans and policies in mixed-market economies and to the problems of capturing the real constraints on policymakers within the abstractions of a model.

Details

  • Author

    Dervis, K. de Melo, J. Robinson, S.

  • Document Date

    1989/08/31

  • Document Type

    Publication

  • Report Number

    10173

  • Volume No

    1

  • Total Volume(s)

    1

  • Disclosure Date

    2010/07/01

  • Doc Name

    General equilibrium models for development policy

  • Keywords

    general equilibrium model;computable general equilibrium model;dynamic computable general equilibrium;choice of government policy;agency for international development;linear programming model;equilibrium exchange rate;social accounting matrix;Applied General Equilibrium;Exchange Rates;structure of production;development policy;sector model;general equilibrium framework;Trade Policy;Trade Policies;income and expenditure;burden of adjustment;domestic financial market;flow of fund;balance of payment;factor of production;flexible exchange rate;exchange rate policy;trade and growth;increase tariff;impact of adjustment;general equilibrium system;modern economic growth;domestic financial assets;share of export;real exchange rate;Exchange rate policies;degree of autonomy;structure of employment;foreign exchange receipts;foreign exchange shortage;foreign exchange crisis;allocation of resource;linear expenditure system;labor force growth;terms of trade;ratio of imports;Balance of Trade;analysis of poverty;impact of policy;resource allocation decision;capital goods import;accumulation of data;identification of constraints;foreign exchange regime;structure of incentive;adjustment mechanism;linear model;policy formulation;external shock;relative price;foreign trade;market mechanism;empirical application;real income;import substitution;export expansion;export supply;product differentiation;mixed economy;macroeconomic impact;real absorption;sectoral ministries;political power;accounting framework;alternative policy;rent seeking;dynamic model;partial equilibrium;electrical machinery;national income;capital accumulation;real resource;domestic demand;behavioral assumptions;shadow price;basic structure;trade strategy;primary exporter;export demand;foreign debt;welfare effect;industrial strategy;domestic price;linear function;industrial structure;Stabilization policies;price mechanism;circular flow;factor market;policy package;price system;policy regime;parameter value;product market;endogenous variable;net prices;industrial growth;Economic Policy;tariff change;mathematical structure;macroeconomic effect;empirical model;resource cost;policy problems;sector analysis;investment allocation;trade theory;structural adjustment;external events;trade structure;optimizing behavior;nominal wage;Monetary theories;household income;institutional feature;expenditure share;trade elasticity;social structure;trade datum;liberalized trade;aggregate flow;factor return;production technology;technical feasibility;Macroeconomic Analysis;functional form;investment analysis;traded goods;nontraded good;incentive policy;inflationary pressure;empirical result;real return;implicit price;portfolio adjustment;financial liberalization;sectoral planning;tax policy;trade model;political feasibility;individual investment;demand management;monetary theory;macroeconomic implication;import substitute;market force;comparable data;command economy;basic model;model result;market system;production target;import side;intermediate input;market incentive;stabilization problem;policy variable;price incentive;equilibrium theory;macroeconomic forecast;econometric specification;import good;supply elasticity;price level;real devaluation;distribution considerations;medium-term planning;domestic policies;individual decision;relevant market;disaggregated level;quantitative analysis;adjustment policy;metal product;trade adjustment;macroeconomic adjustment;class conflict;development theory;price determination;financially support;comparative analysis;dedicated research;transportation equipment;lorenz curve;factor mobility;mobile factor;capital stock;economic sector;analytical systems;energy price;centrally determine;theoretical model;empirical estimate;neoclassical framework;basic metal;trade balance;light industry;supply equation;simple model;equilibrium price;commodity bundle;processed food;heavy industry;manufacturing sector;price elasticity;export volume;net capital;restrictive trade

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Citation

Dervis, K. de Melo, J. Robinson, S.

General equilibrium models for development policy (English). A World Bank research publication Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/386191468765592396/General-equilibrium-models-for-development-policy