Modeling Growing Economies in Equilibrium and Disequilibrium

Abstract

The papers in this volume were presented and discussed at a meeting held at IIASA. The meeting's goals were to stimulate interaction and collaboration, and to encourage setting research priorities for the future. Indeed, it is in this latter area where the meeting appeared to yield some of its greatest benefits. It became clear from the deliberations that much needs to be done to better specify the microfoundations of general equilibrium models. More realistic specifications of conflict resolution in resource allocation, in both market and nonmarket economies, need to be developed. Equally importantly, much work is required to explore the role of economic in economic growth and development. Equilibrium and disequilibrium are positive, not normative concepts; neither view is right or wrong; neither will necessarily yield desired social outcomes at all stages of development, or across all regions. Rather, they yield quite different outcomes, which themselves should be subjects for scientific inquiry. The meeting pointed out the potential for expanding the conceptions of general equilibrium modeling to incorporate elements of analysis, so that this framework may not only be increasingly relevant to Eastern countries, but so that the possibilities of East-West interaction on critical aspects of resource allocation and economic growth can be enhanced.