ABSTRACT
This conclusion presents some closing thoughts on the key concepts discussed in the preceding chapters of this book. In this dissertation, the authors developed a simple multisector general equilibrium model of the open economy. The model is deliberately kept simple in order to facilitate, first, an understanding of its workings, and, second, the empirical implementation. This research could be extended in several directions. First, the dynamic structure of the estimated model could be analyzed by finding its characteristic roots. Second, the model could be used in other interesting policy simulations. A third extension could be to test some of the hypotheses which, in this book, have been treated as maintained. Fourth, it would be quite straightforward to disaggregate the data base and re-estimate the model with more than three individually distinguished commodities. A final, and more fundamental, extension would be to make the supply side of the model explicitly dynamic.
