By Arend KOUWENAAR (Eds.)
Utilizing contemporary examine on Ecuador, this publication discusses a social accounting matrix (SAM)-based version for simulating the results of simple wishes guidelines on numerous socio-economic teams. particular parameter selection and specification of relationships let the final equilibrium version to catch rigidities and occurrences of non-perfect commodity and issue markets. simple wishes pride is defined as an ``output'' because of source of revenue formation and expenditure, and dynamically associated with the structural techniques of loved ones and socio-economic workforce formation, formation of the labour strength and wealth, and labour productiveness. Simulations be aware of the consequences of assorted expenditure, oblique tax and redistributive rules on earning and uncomplicated wishes pride
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Extra info for A Basic Needs Policy Model: A General Equilibrium Analysis with Special Reference to Ecuador
The model greatly emphasises income distribution occupational labour and household categories), while capital stocks, supplies by skill type and other variables are adjusted yearly according to provides much behavioural detail rules or extrapolation. The model also on the external sector, trade and tax policies and includes monetary variables. Relevance of General Equilibrium Modelling for Developing Countries 33 Various other socio-economic-demographic models not of the general equilibrium type exist.
But such a static evaluation, if possible, would still be insufficient since a specific government intervention to finance the basic needs satisfaction of a group may have a dynamic impact: for example, the subsidy to sectors, in which the poor are employed, may alter the production and investment structure and future productivity. The possible trade-off between redistribution and basic needs consumption on the one hand and savings and growth on the other is known to be controversial. e. ) exist; ii) a potential loss of savings through redistribution of income or assets may be compensated by productivity effects of improved basic needs satisfaction and higher income through a higher employment of domestic resources.
Macro closures have been recently in Taylor and Lysy (1979), Rattso (1982), Whalley and Yeung discussed (1984) and Dewatripont and Michel (1987). It is apparent that in more flexible models required "mixed closures" are possible, that is, the ex-post equalities are established by the simultaneous adjustment of various ment through adjustment of the absolute price level, implying endogenous are equated variables. For example, macro savings and investthrough a combination of changes in the domestic price level and the interest rate (probably affecting real savings and investment in opposite ways), in income (affecting savings and investment in the exchange savings rate direction, (affecting the cf.