Macroeconomic Policy, Investment, and Urban Unemployment in Less Developed Countries

Walter Haessel

American Journal of Agricultural Economics, 1978, vol. 60, issue 1, 29-36

Abstract: The two sector Harris-Todaro model, extended to include a government sector and aggregate demand, is used to analyze the effects on output, prices, and employment of policies designed to mitigate urban unemployment. An increase in aggregate demand will be inflationary even though output will increase. Government job creation will be inflationary, will stimulate manufacturing output, but may result in a decrease in agricultural output. Investment in agriculture will increase agricultural output, decrease manufacturing output, and decrease price level. Investment in manufacturing results in an increase in manufacturing output, agricultural output and employment will decline, and prices will fall.

Date: 1978
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.2307/1240158 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:60:y:1978:i:1:p:29-36.

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().