By N. S. S. Narayana
This booklet provides an empirically predicted utilized basic equilibrium version for India and the research of quite a lot of coverage concerns conducted utilizing the version. many of the chapters within the e-book take care of public distribution guidelines, overseas alternate and relief guidelines, rural works programmes, phrases of exchange regulations, fertilizer subsidy rules and irrigation improvement rules. those guidelines are analysed when it comes to their speedy and medium time period results on creation, intake and costs of alternative commodities, at the progress of the economic system in addition to at the distribution of source of revenue between various teams in rural and concrete parts and the prevalence of poverty within the economic system. every one bankruptcy facing coverage research describes the analytical concerns concerned, the old context and event of the coverage involved, result of the version eventualities and the coverage insights that emerge
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Additional resources for Agriculture, Growth, and Redistribution of Income: Policy Analysis With a General Equilibrium Model of India
Non-agriculture. In our model, all non-agricultural commodities were ag gregated into one sector. For such an aggregated non-agriculture sector in a developing country like India where many subsectors often produce output below capacity level for want of spare parts, inputs or demand, the conven tional production function approach is inadequate. It is necessary to character ize the sector in a way that leads to investment and capacity expansion even in the face of persistent idle capacity. The basic idea in our approach is that the non-agriculture sector expands capacity so as to minimize expected cost of production to meet future demand which is uncertain.
WAGES and odiers were exogenously fixed as proportions of GDPAG at their respective averages over a period of eight years, 1970-71 to 1977-78, from die data from the National Accounts Statistics (CSO). Step 2: For die s^ farm-size class ( s = l , . . 15), let TAO^j = proportion of land owned in total agricultural land; TRENT , = proportion of land rented-out in total leased out land; TAOP^j = proportion of effective land operated in total land; TPEOP^, = proportion of plant and equipment owned in the total plants and equipment used in agriculture; AGLAB^,= proportion of agricultural labourers in die total agricultural labour force.
Some commodity outputs were valued in Indian rupees at some base year prices. Appropriate wholesale price indices were used in bringing them to a common base year (1970) prices. Depending on the commodity and the sector to which it belonged either a base year wholesale price was used in converting the value output to physical units or a base year exchange rate (assumed to be Indian Rs. 5 per US dollar in 1970) was used in converting the value o u φ u t in 1970 Indian rupees to 1970 US dollars. 2 Demography One of the important uses to which the model was to be put, was to analyze policies towaids reduction of poverty and income redistribution.