ABSTRACT
Richard Porter has constructed a 'heuristic' model of what he calls the South African-type economy, that is, a model '...aimed primarily at understanding rather than empirical application [of] a market economy where market constraints and policy parameters are determined by whites and for whites.' 1 Within the framework of this model, Porter proceeds to analyze the effects on a number of goal variables of changes in four parameters at the disposal of the white policy makers: the white wage rate, the ratio at which jobs are reserved for whites in the industrial sector, the black wage and the price of manufactures in terms of agricultural goods.
