Economic Modelling and Policy Analysis

The central theme of this book is applied partial and general equilibrium modelling. In recent years, economic model building has shifted from essentially empirically ascertained model specifications, to formulations which are derived from, or consistent with, optimizing behaviour of economic agents. The book gives an introduction to the optimization technqiues needed im empirical model-building. The theoretical and empirical models for consumer behaviour, for production and factor demand, for single markets and economy-wide general equilibrium models are then presented. For each type of model, the aim is to show how empirical models with the features mentioned can be obtained and used for policy purposes.