By N.S.S. Narayana, Kirit S. Parikh and T.N. Srinivasan (Eds.)

This publication offers an empirically envisioned utilized basic equilibrium version for India and the research of quite a lot of coverage matters performed utilizing the version. a number of the chapters within the ebook take care of public distribution regulations, overseas alternate and reduction guidelines, rural works programmes, phrases of alternate regulations, fertilizer subsidy regulations and irrigation improvement rules. those rules are analysed by way of their instant and medium time period results on creation, intake and costs of alternative commodities, at the development of the financial system in addition to at the distribution of source of revenue between diversified teams in rural and concrete components and the prevalence of poverty within the economic system. each one bankruptcy facing coverage research describes the analytical matters concerned, the historic context and event of the coverage involved, result of the version eventualities and the coverage insights that emerge

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Extra info for Agriculture, Growth and Redistribution of Income: Policy Analysis with a General Equilibrium Model of India

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In practice, these differences turned out to be insignificant and were ignored. As will be seen below, factor ownership pattern only indirectiy influences the income distribu­ tion. Specifically at a given set of target sectoral relative prices die total agricul- 44 Agriculture, Growth and Redistribution of Income tural income and non-agricultural income are determined. ^** Given these agricultural, rural non-agricultural and urban non-agricultural incomes, aggregate consumption expenditures were computed, using aggregate consumption functions estimated separately for rural and urban regions.

Income from productive activity comes from tlie production of agricultural and non-agricultural outputs and accrues to the primary factors (land, labour and capital) employed in production. The claim of an individual for a part of diis income stream, his "income entidement" so to speak, depends on die extent of his ownership of die factors of production and on factor prices. If data were available on the amount of land, labour and capital owned by an average member of each expenditure class in die base year and if one can specify die evolution of die population in each class, its ownership patterns and factor prices over time in each run of die model, it would be trivial to determine die class-wise income distribution.

Thus die total cost, C, was specified as: C ( Q . Q C J = Q J a . s. is the cost per unit. Minimization of the expected costs (ie-. by writing equation (33) in terms of expected values and minimizing) over QC^ gives us the cost minimizing desired capacity, QC^^ as follows: QC^ = V(Q,)/E(Q^) -K E(Q^) - α,/2α, (34) where V(Q^) is die variance of and E(Q^) is die expected output level. Now, a j was assumed to be zero, so diat QC^ = E(Q,) + V(Q,)/E(Q,) (35) Wc could assume: (0 (ii) V(Qj) is constant over time, and expected actual output generally equals expected demand for die good, so diat E(Q^) = E(YIODD^) (36) where YIODD is the demand for non-agriculture in die country as a whole.

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