Suchergebnisse

The sensitivity of multiplier estimates under 3 alternative assumptions about factor supply is investigated. These are: (1) capital, labor, & imports are available in infinite supply at given prices, (2) capital stocks are fixed, & (3) both capital stock & the available supply of labor are fixed. These assumptions represent alternatives to "closure rules." A general equilibrium model of Malaysia is used which allows endogenous determination of factor & output prices & which permits substitution in both production & demand in response to price. The model contains 14 production sectors, 8 labor types, & 12 household groups. The 14 production sectors reflect export oriented goods, import competing goods, & nontradeable goods & commodities. The labor types include illiterates, some primary education, completed primary education, some secondary education, & those with a high school certificate or more. The household groups represent Malay households, non-Malay households, & rentier households. Using the model, a comparison of the effects of an increase in government expenditure with an increase in total investments on employment, wages, & household incomes is examined. Increased government expenditure resulted in a 5.1% employment increase & an increase in total investment resulted in a 4.1% employment increase. Higher skilled workers were the most affected by increases in government expenditure. Although both variants resulted in wage increases, those in higher skill types received substantially higher increases than those with lower skills. Non-Malay households showed greater consumption gains than Malay labor households. 3 Tables, 2 Figures. J. Schulman.