Table 1 Model closures or system constraints

1. Micro closures

1.1 Commodity markets:

C

Endogenous prices clear markets

Neo-classical

1.2 Factor markets:

FACLOS

labor 1 (illiterate agricultural workers):

flab-i

Factor is fully employed & activity specific in sim

Non neo-classical

labor 2 (low-skilled labor):

flab-l

Factor is unemployed & mobile in sim

Non neo-classical

labor 3 (semi-skilled labor):

flab-s

Factor is unemployed & mobile in sim

Non neo-classical

labor 4 (high-skilled labor):

flab-h

Factor is fully employed & mobile in sim

Neo-classical

capital 1 (physical capital):

fcap

Factor is fully employed & activity specific in sim

Non neo-classical

capital 2 (livestock capital):

fcat

Factor is fully employed & activity specific in sim

Non neo-classical

land (marginal land):

flnd-m

Factor is fully employed & activity specific in sim

Non neo-classical

land (small-scale):

flnd-s

Factor is fully employed & activity specific in sim

Non neo-classical

land (large land):

flnd-l

Factor is fully employed & activity specific in sim

Non neo-classical

2. Macro closures

Saving-investment

SICLOS

Investment fixed & saving is flexed (so the MPS of all domestic non-government institutions are flexed at the base value) (Investment driven)

Neo-classical

Government balance

GOVCLOS

Government saving flexed- tax rates fixed (in ad-valorem)-therefore no scaling in the tax rates plus government consumption fixed but CPI indexed

Neo-classical

Current account balance (ROW)

ROWCLOS

Foreign saving fixed (in foreign currency) & exchange rate flexed

Neo-classical