Using recent research on Ecuador, this book discusses a social accounting matrix (SAM)-based model for simulating the effects of basic needs policies on various socio-economic groups. Specific parameter choice and specification of relationships allow the general equilibrium model to capture rigidities and occurrences of non-perfect commodity and factor markets. Basic needs satisfaction is described as an ``output'' resulting from income formation and expenditure, and dynamically linked to the structural processes of household and socio-economic group formation, formation of the labour force and wealth, and labour productivity. Simulations concentrate on the effects of various expenditure, indirect tax and redistributive policies on incomes and basic needs satisfaction.

Table of Contents

Backgrounds and Skeleton of the Model. Introduction: Policy Modelling for Basic Needs in Ecuador. Relevance of General Equilibrium Modelling for Developing Countries. Outline of a Basic Needs Policy Simulation Model. The Construction of the Model. A General Equilibrium Basic Needs Policy Model: Main Part; Updating Structural Characteristics and Basic Needs Satisfaction; The Calibration of the Model to the Base Year. A Selection of Policy Simulations. Analysis of Static Policy Simulations. Analysis of Dynamic Policy Simulations. Summary and Conclusions. Appendices. References. Indexes.


© 1988
North Holland
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