Abstract
A sequential applied general equilibrium model of the Indian economy is used for analyzing the costs and benefits of a rural works program designed to provide employment during slack agricultural seasons through the creation of productive assets such as roads, irrigation works, schools etc. It is shown that such a program, if carried out efficiently, targeted effectively and financed in a way that does not jeopardize long-term growth, can be a very effective instrument for alleviating rural poverty in India.
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