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A Complete Set of Shadow Prices for Pakistan:Illustrations for 1975-76

  • EHTlSHAM AHMAD

    (Economics Research Centre, University of Warwick)

  • DAVID COADY

    (London School of Economics)

  • NICHOLAS STERN

    (Nicholas Stern is Professor of Economics at the London School of Economics.)

A consistent set of economy-wide shadow prices for Pakistan is presented, based on input- utput flows for the mid-1970s. This provides broad parameters for policy at the sectoral level, with indications as to which sectors should be encouraged under alternative assumptions concerning the behaviour of factor markets. Further, these parameters are useful as inputs for project evaluation. A number of agricultural and manufacturing sectors are identified as being socially profitable. Finally, the shadow prices will be taken as parameters in a tax reform exercise.

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File URL: http://www.pide.org.pk/pdf/PDR/1988/Volume1/7-43.pdf
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Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 27 (1988)
Issue (Month): 1 ()
Pages: 7-43

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Handle: RePEc:pid:journl:v:27:y:1988:i:1:p:7-43
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  1. Ahmad, Ehtisham & Stern, Nicholas, 1984. "The theory of reform and indian indirect taxes," Journal of Public Economics, Elsevier, vol. 25(3), pages 259-298, December.
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