We constructed a relatively simple dynamic general equilibrium model with an agricultural and a nonagricultural sector along neoclassical lines. The economy is closed, but it is not too difficult to evaluate how the opening of the economy would affect the conclusions. The model relates technical change in the two sectors -- capital accumulation and labor and population growth -- to per capita income, sectoral outputs, allocation of resources, and terms of trade. Instead of simulating with the model we use it to measure the impact of the exogenous variables on the endogenous ones at different stages of the development of Japan, i.e., we trace structural changes in that economy.


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