Peasants Versus City-Dwellers: Taxation and the Burden of Economic Development 0199253579, 9780199253579

Table of contents :
PREFACE......Page 6
Contents......Page 10
PART I: AN INTRODUCTION TO ISSUES AND METHODOLOGY......Page 16
1. INTRODUCTION......Page 18
1.1 Normative versus Positive Analysis......Page 19
1.2 Analysis under Limited Data Availability......Page 20
1.3 Policy and Political Economy......Page 21
1.4 General-Equilibrium Analysis......Page 22
1.5 The Structure of the Book......Page 23
1.6 The Nature of the Results......Page 25
1.7 Some Remarks on the Role of Theory......Page 27
2.1 Stated Objectives of Food-Related Policies......Page 30
2.2 Putting Agricultural Policies in Perspective......Page 32
2.3 The Economic Structure of LDCs......Page 36
2.4 Concluding Remarks......Page 41
3.2 Theoretical Background......Page 42
3.3 Applied Welfare Economics for LDCs......Page 45
PART II: INTER-SECTORAL TAXATION POLICIES......Page 52
4.1 Introduction......Page 54
4.2 A Simple Model......Page 57
4.3 Analysis of Changes in Agricultural and Industrial Prices......Page 60
4.4 Price-Productivity Effects......Page 70
Appendix......Page 72
5.1 Introduction......Page 74
5.2 Effects on the Investible Surplus of Changes in the Price Scissors......Page 75
5.3 Welfare Effects of Changing the Price Scissors......Page 77
5.4 Optimal Price Scissors......Page 78
5.5 Concluding Remarks......Page 79
6.1 Introduction......Page 80
6.2 The Model......Page 81
6.3 Reform in the Price Scissors......Page 88
6.4 Optimal Price Scissors......Page 90
6.5 Economies with Traded and Non-Traded Goods......Page 94
6.6 Concluding Remarks......Page 96
Appendix......Page 97
7.1 Introduction......Page 98
7.2 Preobrazhensky's Propositions......Page 99
7.3 The Correct Size of the Price Scissors......Page 102
7.4 Collectivization......Page 103
7.5 A Postscript on the Soviet Debate......Page 104
PART III: THE RURAL SECTOR......Page 108
8.1 Introduction......Page 110
8.2 Distributional Effects......Page 111
8.3 Alternative Forms of Rural Organization......Page 118
8.4 Effects of Wages and Prices on Rural Productivity......Page 121
8.5 Concluding Remarks......Page 123
9.1 Introduction......Page 125
9.2 A General Formulation......Page 127
9.3 Informationally Parsimonious Pareto-Improving Price Reforms for Cash-Crops and Manufactured Inputs......Page 129
9.4 Should Some Cash-Crops or Manufactured Inputs be Taxed and Others Subsidized?......Page 133
9.5 Some Caveats......Page 134
Appendix......Page 136
PART IV: THE URBAN SECTOR......Page 140
10.1 Introduction......Page 142
10.2 A General Formulation of Urban Wage-Determination......Page 144
10.3 Urban-Rural Prices with an Endogenous Urban Wage......Page 146
10.4 Price Scissors with Endogenous Wages......Page 150
10.5 Endogenous Urban Wage versus Government-Controlled Urban Wage: Which is the Appropriate Assumption for LDCs?......Page 152
10.6 Note on the Urban Wage Fixed in Terms of the Utility Level......Page 154
10.7 Urban Unemployment......Page 155
11.1 Introduction......Page 160
11.2 Why Do Wages and Prices Affect Productivity?......Page 162
11.3 A Model of Wages, Prices, Productivity, and Unemployment......Page 165
12.1 Introduction......Page 171
12.2 A General Formulation......Page 173
12.3 Generalizations......Page 177
Appendix......Page 179
13.1 Introduction......Page 180
13.2 The General Migration Relationship......Page 181
13.3 Rural-Urban Prices......Page 185
13.4 Pareto-Efficient Urban Taxes on Different Goods......Page 191
13.5 Concluding Remarks......Page 193
Appendix......Page 194
14.1 Introduction......Page 196
14.2 A General ModeI of the Urban Sector......Page 197
14.3 Inefficiency of Market Equilibrium......Page 201
14.4 Interdependence of Demand and Supply of Urban Labour......Page 202
14.5 Concluding Remarks......Page 206
15.1 Introduction......Page 207
15.2 The Model......Page 208
15.3 Special Cases......Page 212
15.4 Concluding Remarks......Page 216
16.1 Some Key Issues......Page 218
16.2 Political Economy Considerations......Page 222
16.3 The Policy Predicament......Page 223
References......Page 224
D......Page 232
I......Page 233
N......Page 234
P......Page 235
S......Page 236
U......Page 237
Z......Page 238