General Equilibrium Models for Development Policy provides a comprehensive survey of multisector, economy-wide planning models, with particular attention to issues of trade, distribution, growth, and structural change. The authors combine theoretical discussion of the properties of multisector applied equilibrium models with numerical applications to particular countries and problems. The models considered range from input-output and linear programming to the more recent nonlinear computable general equilibrium (CGE) models. The authors consider how these models can be used to analyze questions of growth and structural change, the selection of foreign exchange regime, and the impact of alternative development strategies on the distribution of income. The empirical applications are based both on cross-country analysis and on the experience of particular countries and demonstrate how such models provide a useful framework for policy analysis. Particular attention is focused on the problems of planning and policy formulation in mixed-market economies and on the nature of models required to capture the important mechanisms that constrain policy makers.

General Equilibrium Models will be of interest to professional economist as well as advanced students in the areas of economic development, economic planning, and economic modeling. The authors, now affiliated with the World Bank, all have extensive teaching experience and have designed the book to meet the needs of upper-level students in economics. It will also be considerable use to policy makers and economic researchers and technicians in advanced as well as less-developed countries.