Abstract

This article describes the macroeconomic model used in an ongoing study of technology policies and North South relations. Other aspects of the study have been described elsewhere. We examine here the rationale for the theoretical structure used in the model. ,the details of the equations. and a computation of solutions. To illustrate the dynamics of the model. a brief discussion is also given of the preliminary results that indicate critical relationships between domestic technology and income distributions and the North-South terms of trade. The results are based on a calibration of the model using data for Brazil and the United Kingdom.

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