Presents a new approach to incorporating regional details on production in a disequilibrium macroeconometric model.
This text presents a new approach to incorporating regional details on production in a disequilibrium macroeconometric model. The early studies on disequilibrium dealt with either partial-adjustment models or models involving excess demand or supplies in markets. In this study the authors consider a different type of disequilibrium model - one in which econometric analysis makes use of the varying coefficients stochastic production frontier approach, which permits estimation and analysis of production efficiencies of individual producers. The book also presents an innovative approach to production modelling in macro econometric models as it provides a useful framework for incorporating production efficiencies and regional details of production in the macro models. It is a pioneering study that combines the stochastic frontier approach with macro econometric modelling. Primarily focused on India, it also provides insights into problems in modelling economies of other developing countries.
Economic reforms and agriculturedisequilibrium framework; Model development: the agricultural sector; The non-agricultural sectors: output, prices and trade; Integration of the sectoral details in the macroeconomic framework; Impact of alternative policy choices on agriculture: applications of the model; Summary and conclusions. Appendices: data details; model equations - specification; model equations - estimation results.