01860cas a2200241 a 4500 AALejournalIMF002630 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451965667 1018-5941 BD-DhAAL BD-DhAAL Osband, Kent. General Equilibrium Under Shortage : A Generalized Barro-Grossman Model / Kent Osband. Washington, D.C. : International Monetary Fund, 1991. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In several recent articles, the Barro-Grossman model of general equilibrium under shortage has been modified to incorporate money demand and alternative retail sales mechanisms. This paper extends this work to allow for spillovers in deficit goods markets (modeled as feedback of black market prices on the real value of nominal money balances). Comparative statics analysis confirms the conventional view, recently challenged in the literature, that government expenditure in a shortage economy tends to reduce output. The conventional view associating shortage with higher savings is, however, substantially qualified. The model appears to be more consistent than previous models with the available empirical evidence, and offers insights into the consequences of price and monetary reform in shortage economies. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1991/059 Full text available on IMF http://elibrary.imf.org/view/journals/001/1991/059/001.1991.issue-059-en.xml IMF e-Library