Applied General Equilibrium and Economic Development

Present Achievements and Future Trends
Jean Mercenier and T. N. Srinivasan, Editors
With a foreword by Herbert E. Scarf
Presents sophisticated applied analyses of issues in development economics


Traditional tools of analysis that focus on particular commodities or sectors, a particular time frame, and aggregate diverse socioeconomic groups are ill-suited to analyze the consequences of the economic reforms of the last ten years. This volume shows the greater power and relevance of applied general equilibrium methods.

Through discussion of several major policy issues---agricultural and food policy, economies of scale in production and the associated market imperfections, macrostabilization programs, and modeling intertermporal tradeoffs---the contributors present work representative of the major trends in applied general equilibrium modeling of developing-country issues. Policy analysis using a rich variety of static, recursive, and intertemporal dynamic models is illustrated with problems from a number of developing countries in Africa, Asia, and Latin America. The countries studies range widely in their institutional features, stages of development, and economic size.

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Introduction by Jean Mercenier and T.N. Srinivasan     1

Part 1. Modeling Agricultral Policy Issues

Chapter 1. Food Policy Simulations for Indonesia: The Fifth Five-Year Plan Period, 1989-93 by Michiel A. Keyzer and Wim C.M. van Veen     21

Comment: Jeffrey D. Lewis
Comment: Shantayanan Devarajan

Chapter 2. Agricultural Price Policy in India: Some Explorations by Kirit S. Parikh     65

Comment: Gary McMahon
Comment: Andre Martens

Part 2. Analysis of Stablization Programs

Chapter 3. Macroeconomic Stabilization and Adjustment Policies in a General Equilibrium Model with Financial Markets: Turkey by Jeffrey D. Lewis     101

Comment: Eduardo Lora
Comment: Nancy Benjamin

Chapter 4. A Financial Computable General Equilibrium Model for the Analysis of Stabilization Programs by Andre Fargeix and Elisabeth Sadoulet     147

Comment: Lance Taylor
Comment: Francois Bourguignon

Part 3. Modeling Imperfect Competition

Chapter 5. Tariffs and Export Subsidies when Domestic Markets Are Oligopolistic: Korea by Jaime de Melo and David Roland-Holst     191

Comment: Dominique Desruelle
Comment: Ngo Van Long

Chapter 6. In the Cournot-Walras General Equilibrium Model, There May Be "More to Gain" by Changing the Numeraire than by Eliminating Imperfections: A Two-Good Economy Example by Victor Ginsburgh     217

Comment: Jacques Robert

Part 4. Modeling Intertemporal Trade-offs

Chapter 7. Investment, Expectations, and Dutch Disease: A Comparative Study: Bolivia, Cameroon, Indonesia by Nancy Benjamin     235

Comment: Gary McMahon

Chapter 8. A General Equilibrium Analysis of the Effects of Carbon Emission Restrictions on Economic Growth in a Developing Country: Egypt by Charles R. Blitzer, Richard S. Eckaus, Supriya Lahiri, and Alexander Meeraus     255

Comment: Shantayanan Devarajan

Chapter 9. Structural Adjustment and Growth in a Highly Indebted Market Economy: Brazil by Jean Mercenier and Maria da Conceicao Sampaiio de Souza     281

Comment: Lance Taylor
Comment: Michiel Keyzer

Chapter 10. North-South-OPEC Trade Relations in an Intertemporal Applied General Equilibrium Model by Jean-Claude Berthelemy and Francois Bourguignon     317

Comment: Victor Ginsburgh

References     347
Contributors     359

Product Details

  • 6 x 9.
  • 376pp.
  • figures, tables.
Available for sale worldwide

  • Hardcover
  • 1994
  • Available
  • 978-0-472-10382-9

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  • $104.95 U.S.