Policy simulations with a macroeconometric model of the Indian economy

In this paper, the results of various dynamic policy simulations are analyzed within the context of a macroeconometric model of the Indian economy. The model contains 35 equations and offers a consistent framework for policy analysis. It is considerably expanded on the side of the fiscal sector and usefully incorporates the interdependence between monetary and fiscal sectors and gives due attention to supply side considerations. Magnitudes of effects of sustained policy changes are analyzed for the period 1964–1965 to 1974–1975. Impact multipliers and elasticities are also analyzed. Government expenditures variables and deficit financing are shown to have substantial impact on the system whereas changes in tax-rates, discount-rates, and liquidity ratios for commercial banks are shown to have only a marginal impact. The model is used for exploring the growth potential of the economy in a forecast period of five years under alternative assumptions regarding policy options.     

A longitudinal study of some dimensions of socioeconomic development: Turkey 1948–77

Aspects of socioeconomic development in Turkey between 1948 and 1977 are studied through the use of obliquely rotated principal compenents. The results indicate that long-term developmental trends, which appear in the cross-sectional studies of Adelman and Morris, were slowed down by problems of sociopolitical integration during the sample period. In addition, the analysis shows that multivariate techniques such as compenent analysis can be used at the initial stages of theory construction in the field of socioeconomic development. The hypotheses developed via these methods are testable by others that use the deductive approach.     

North-South relations: Alternative policy simulations for the world economy in the 1980s

This article makes projections of the world economy in the North-South context for the period 1981–1990 using a latest global version of a macroeconomic model named FUGI-GNEM type IV 011–62. The model classifies the world into 62 countries/regions, where the North-South interdependence is incorporated into an integral part of the world economy through international economic linkages. Based on alternative simulations, the author presents future images of the North-South interdependent world economy through changes in economic growth rates, employment, wages, prices, money supply, interest rates, public finance, trade, capital movement, international balance of payments, foreign exchange rates, etc., in each country or region. The model forecasts that the real economic growth of the developing countries as a whole in the 1980s will likely be around 4%–7% annual rate according to alternative policy scenarios.     

Some thoughts on the restructuring of North-South interaction

The theory of international trade presents trade as a positive-sum game for all participants. Yet, most of the negotiations between the developed and the developing countries seem to have been conducted under a perception of reality that views North-South relations as a zero-sum game. The purpose of this paper is to suggest a general framework for institutional and structural changes to benefit all participants. A number of original proposals for international reforms to support equitable development in developing countries are presented. The major element of the proposals include a Land Reform Fund, a rural and industrial development package for LDCs, support for trade liberalization of impacts from land reform countries, and an industrial Assistance Fund to help industrial countries to restructure production pattern.The proposals contain obviously far reaching national and international political implications whose impact is assessed in the concluding part of the paper. There the claim is made that unless both sets of countries find cooperation mutually attractive, they will be unable to embark in development strategies characterized by the highest chance of success and with the fewest economic and social disruptions.     

Exchange rate policies simulated by means of a disequilibrium model of the Finnish economy

In this paper a model for the Finnish economy with disequilibrium in the goods and financial markets is specified and estimated by single equation methods. The transmission mechanisms of the model are studied in the framework of various devaluation simulations. The model is very sensitive, especially with respect to the prevailing credit market regime and possible regime changes. Policy effects are not so much affected by conditions in the goods market, assuming moderate policy shocks. These considerations suggest the importance in policy planning of identifying the regimes prevailing in the markets.     

Poverty, inequality, and development: A distributional approach

Economists have concentrated on aggregate economic growth to measure countries' development progress and in recent years have also considered income distribution performance. This paper reverses the conventional emphasis by placing income distribution at the forefront. I examine what is known about the distributions of income and poverty in the developing countries of the world and probe the correlations between poverty, inequality, and development. I explore the main sources of inequality and the extent to which individual countries have managed to alleviate poverty and reduce inequality in the course of economic growth. Employing evidence from case studies of six developing nations. I suggest some explanations for differing patterns of development and call for development planning founded on a firm commitment to helping the poor.     

欧几里得空间建立对偶原理的一种方法

本文旨在根据欧几里得空间的特征,探求在欧几里得空间建立对偶原理的一种方法.并利用这种方法说明初等几何中仅与度量性质有关本身并无联系的两种命题可以对偶地联系起来.     

A computational general equilibrium approach to the shadow pricing of trade restrictions and the adjustment of the exchange rate, with an application to Argentina

A general equilibrium model of an open economy in which there are ad valorem texes on domestic production and export activities, and import activities are subject to both tariffs and quotas is constructed. A domestic monetary asset, foreign exchange, and a corresponding nominal exchange rate are introduced and a numerical example of the model is constructed. The example is solved via the Scarf fixed point algorithm, first with taut quotas and then after having relaxed quotas. Various price indices are then used to guide programs designed to stabilize the trade balance against the quota liberalization. An empirical example, using Argentine data, is carried out to find the quota equivalent of a particular tariff.     

Agricultural policies and development: A socioeconomic investigation applied to Sri Lanka

This paper explores the interrelationship between agricultural policies and development by means of a dynamically recursive, computable general equilibrium model applied to Sri Lanka. The agricultural policies investigated include elimination of the food subsidy, land reform, and technical change in agriculture. The goals considered are the levels and growth rates of GNP and employment, the distribution of income, and the real income level of the lowest income group. The study provides a quantitative assessment of the association between policies and goals and identifies the key economic mechanisms in this association.