Munich Personal RePEc Archive

Growth Dynamics in a General Equilibrium Macroeconomic Model for India

Goyal, Ashima (1994): Growth Dynamics in a General Equilibrium Macroeconomic Model for India. Published in: Journal of Policy Modeling , Vol. 16, No. 3 (1994): pp. 265-289.

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Abstract

Medium-run growth dynamics of a “modern” sector are examined in a simple aggregative general equilibrium macromodel. The effect of agriculture-industry interactions on the growth path are then analysed in a ten-sector disaggregated applied general equilibrium model (AGEM) for agriculture policy analysis. The model endogenously generates a relatively rigid mark-up and large quantity response to shocks. The latter explains endogenous growth amplifications. The model is used to understand the Indian growth experience. The emphasis on dynamics helps to identify policy interventions that, by changing parameters in desirable directions, can amplify growth.

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