In the last ten years, general equilibrium modelling has become a significant area of applied economic research. Its focus is to develop techniques to facilitate economy wide quantitative assessment of allocative and distributional impacts of policy changes. This book presents the first full length treatment of the development and application of an applied general equilibrium model of the Walrasian type, constructed to analyse UK taxation and subsidy policy. It also provides results of model experiments which have been designed to inform the policy debate, not only in the UK but also in other countries.
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