This paper presents the Development Policy Evaluation Model (DEVPEM), a new simulation model which captures four critical aspects of rural economies in developing countries: (1) the role of the household as both a producer and a consumer of food crops; (2) high transaction costs of participating...

This chapter reviews the literature on applied general equilibrium analysis of agricultural and resource policies. It begins with a historical overview, followed by an assessment of the benefits of this methodology for examining sectoral policies. The chapter then turns to questions of...