Econometrica: Apr 1965, Volume 33, Issue 2

A Pilot Programming Model of New Zealand Economic Development

https://doi.org/0012-9682(196504)33:2<357:APPMON>2.0.CO;2-1
p. 357-381

C. A. Blyth, G. A. Crothall

The optimal allocation of resources in New Zealand is analysed by applying linear programming methods to a general equilibrium model. A rich range of economic results--particularly in respect of bottlenecks--is obtained by examining near optimal and dual solutions. Changing the data by means of sensitivity analysis reveals the changes investment, production, the exchange rate, and wage policies that follow changes in export prices, import prices, technology, and the labour force. The effect of minimum and maximum wage policies is examined by adding special restraints to the dual problem.

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