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Abstract

In order to discuss the place of agriculture in growth, as well as the economic relationships between sectors, general equilibrium models of Hungarian and Polish economies are built up. Because price stabilisation policies are at stake in these countries, emphasis is put on introducing risk consideration into the equilibrium. Because growth is an important issue, the models are made recursive, by making current stocks dependant upon past year flows. It is shown that many conclusions, such as the large benefits from trade, which seem firmly founded when risk is not considered in models, mus be revisited when it is.

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