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MRP Technique - Estimating the Level of Output for the Target Year
Taking into account several parameters of economic growth such as past trends, present as well as proposed investments at the macro-level, population pressures, etc. the desired target of economic growth in terms of GDP per capita for a given year in future will be set.
The GDP per capita of the accounting year will be taken as base year. The year for which a desired GDP is targetted is the target year. Increases in output required to fill up the gap will be computed taking into consideration the growth rate of population.
Consider the model of corruption explored by Shleifer and Vishni’s where there is one government-produced good X. There is a demand for that good described by the inverse demand eq
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