Güven, Sibel, "A General Equilibrium Analysis of Income Distribution and Development Policy", 1991
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This paper presents an empirical analysis of the interaction between growth and income distribution for the Turkish economy over the period 1973-1979. The analysis is based on at multi-period, multi-sector computable general equilibrium model constructed for the Turkish economy, that permit’s the evaluation of distributional as well as growth consequences of alternative policies. Along with empirical testing of the model, three sets of experiments are conducted with the model. Counter factual trade policy experiments, alternative wage policy experiments and simulations investigating the distributional and growth consequences of alternative potential redistributive policies indicate that the size distribution of income is stable and very difficult to change with the policy interventions considered. Agricultural terms of trade is one of the most important determinants of reducing overall poverty, and policy instruments conducive to higher growth is not necessarily in conflict with the policies aiming at more even distribution of income.