Why the poor care about partial versus general equilibrium effects - Part I
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.
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.