Why the poor care about partial versus general equilibrium effects - Part I

Peter Wobst

No 60, TMD discussion papers from International Food Policy Research Institute (IFPRI)

Abstract: The paper compares the effects of productivity growth in agriculture in a standard CGE model and an adjusted CGE model with special features in order to replicate partial equilibrium behavior of traded agricultural sectors within a general equilibrium framework. The fixed-price, partial equilibrium CGE model shows a strong multiplier effect so that total GDP, factor earnings, and household incomes increase with the productivity growth in agriculture. In comparison, the standard CGE model generates much more diverse sectoral behavior, stronger trade through shifts in the exchange rate, and a less equitable income distribution among farm and non-farm households.

Keywords: Growth economics Models; Equilibrium (Economics) Models; agricultural economics; TMD (search for similar items in EconPapers)
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.ifpri.org/sites/default/files/publications/tmdp60.pdf (application/pdf)

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:fpr:tmddps:60

Access Statistics for this paper

More papers in TMD discussion papers from International Food Policy Research Institute (IFPRI) Contact information at EDIRC.
Bibliographic data for series maintained by (ifpri-library@cgiar.org).