Most of the world's population and the vast majority of the world's poor live and work in villages. Their activities are usually centred in households, but interactions among households shape the impacts of policy, market and environmental changes on rural production, incomes, employment and migration. This book presents a generation of villagewide economic modelling designed to capture these interactions when assessing the impacts of policy, market and environmental changes on rural economies in less developed countries. The authors present a general framework for modelling village economies based on computable general-equilibrium techniques, estimate models for villages and a village-town in five different countries, and use these models to conduct a series of comparative experiments. The findings offer explanations for some paradoxical outcomes of exogenous shocks as their influence winds its way through rural economies, and they underline the importance of adopting a local economy-wide perspective when designing development policies.
• An integrated look at economic development at the village level in a decade • Combines accessible writing with theoretical sophistication; co-author Irma Adelman is a leading development practitioners • Case studies cover Latin America, Africa, and Asia
Acknowledgements; 1. Introduction; 2. Modeling village economies; 3. The village economy and tenure security in West Africa: a Sengalese village SAM Elise H. Golan; 4. Production and distribution in a dry-land village economy Shankar Subramanian; 5. Migration and the changing structure of a Mexican village economy; 6. Economic linkages in a small regional economy: the case of Kutus Region, Kenya Blane D. Lewis and Erik Thorbecke; 7. Household nutrition and economic linkages: a village social accounting matrix for West Java, Indonesia Katherine Ralston; 8. The village CGE: basic model and estimation; 9. Policy simulations; 10. Conclusions; Bibliography; Index.