Studies in the Macroeconomics of Developing Countries

This collection of studies sheds light on some of the most important issues in macro and microeconomic policies in developing countries. The models are built around the major institutional and economic structures of these countries. The studies pay special attention to the macro impact of certain important factors. These include the marketable surplus of food, the terms of trade between industry and agriculture, and strong land preferences. The availability of credit, investment patterns, and transaction difficulties are also considered. The authors attempt to clarify the consequences of procurement and ration prices, subsidies on food and the various methods of financing subsidies on market prices, income distribution and industrial production. They also make a comparative evaluation of the effectiveness of price increases, budget deficits, and value added taxes in financing the expenditure of developing countries. The results of these studies are interesting. While some findings support conventional thinking in development economics, others suggest that some macroeconomic theories are nonsensical and thus pinpoint the need for new, explicit modelling in this field.