The motive force of human activity that propels the stream of progress is here caught at its source, in its most modest, material expressions. The mechanism of the passions acting as determinant in these low spheres is less complex and can therefore be observed with greater precision. All one need do is leave the picture its clear, calm colors and its simple design. Gradually, as that search for material well-being by which man is tormented grows and expand, it also tends to rise and pursue an ascendant course thorough the social classes. In 'I Malavoglia' it is still only the struggle for material needs. Once these needs are satisfied, the search turns into greed for riches and will be embedded in a bourgeois type . . . Giovanni Verga, from the Introduction to The House by the Medlar Tree (I Malavoglia) Motivation In the past decade, many less developed countries have undertaken structural adjustment programs with the hope of breaking the vicious circle of the depression that enveloped them during the 1980s and of loosening the suffocating grip of the debt crisis. Nearly always, macroeconomic stabilization implies a reduction of public spending and, consequently, a reduction of subsidies on wage goods and food production. Other macro policies, such as tariff elimination and exchange rates alignment, alter relative prices and may have significant effects on the level and distribution of income. Today, poverty and inequality are perceived as economic threats as a result of globalization and unbalanced market expansion.

This book covers some important topics in the construction of computable general equilibrium (CGE) models and examines use of these models for the analysis of economic policies, their properties, and their implications. Readers will find explanation and discussion of the theoretical structure and practical application of several model typologies, including dynamic, stochastic, micro-macro, and simulation models, as well as different closure rules and policy experiments. The presentation of applications to various country and problem-specific case studies serves to provide an informed and clearly articulated summary of the state of the art and the most important methodological advancements in the field of policy modeling within the framework of general equilibrium analysis. The book is an outcome of a recent workshop of the Italian Development Economists Association attended by a group of leading practitioners involved in the generation of CGE models and research on modeling the economy and policy making. It will be of interest to researchers, professional economists, graduate students, and knowledgeable policy makers.

This book covers some important topics in the construction of computable general equilibrium (CGE) models and examines use of these models for the analysis of economic policies, their properties, and their implications. Readers will find explanation and discussion of the theoretical structure and practical application of several model typologies, including dynamic, stochastic, micro-macro, and simulation models, as well as different closure rules and policy experiments. The presentation of applications to various country and problem-specific case studies serves to provide an informed and clearly articulated summary of the state of the art and the most important methodological advancements in the field of policy modeling within the framework of general equilibrium analysis. The book is an outcome of a recent workshop of the Italian Development Economists Association attended by a group of leading practitioners involved in the generation of CGE models and research on modeling the economy and policy making. It will be of interest to researchers, professional economists, graduate students, and knowledgeable policy makers.

The motive force of human activity that propels the stream of progress is here caught at its source, in its most modest, material expressions. The mechanism of the passions acting as determinant in these low spheres is less complex and can therefore be observed with greater precision. All one need do is leave the picture its clear, calm colors and its simple design. Gradually, as that search for material well-being by which man is tormented grows and expand, it also tends to rise and pursue an ascendant course thorough the social classes. In 'I Malavoglia' it is still only the struggle for material needs. Once these needs are satisfied, the search turns into greed for riches and will be embedded in a bourgeois type . . . Giovanni Verga, from the Introduction to The House by the Medlar Tree (I Malavoglia) Motivation In the past decade, many less developed countries have undertaken structural adjustment programs with the hope of breaking the vicious circle of the depression that enveloped them during the 1980s and of loosening the suffocating grip of the debt crisis. Nearly always, macroeconomic stabilization implies a reduction of public spending and, consequently, a reduction of subsidies on wage goods and food production. Other macro policies, such as tariff elimination and exchange rates alignment, alter relative prices and may have significant effects on the level and distribution of income. Today, poverty and inequality are perceived as economic threats as a result of globalization and unbalanced market expansion.