It is difficult to find any major branch of applied economics that has not made some use of the simple general equilibrium model of production. For years this model has served as the work-horse for most of the developments in the pure theory of international trade. It has been used to study the effects of taxation on the distribution of income and the impact of technological change on the composition of outputs and the structure of prices. Perhaps the most prominent of its recent uses is to be found in the neoclassical theory of economic growth.

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