Economic Reform in North Korea: A Dynamic General Equilibrium Model
Journal: Munich Personal RePEc Archive (Ludwig Maximilian University of Munich)
Year: 2010

This paper examines the impact of hypothetical market reforms in North. We build a dynamic general equilibrium model and simulate multiple reform scenarios. \nWe first construct a baseline model which mimicks the current command economy. In this scenario the government allocates output in an inefficient way and simulated economic growth is negative. We next model a semi-market transition that allows producers choices regarding the distribution of available capital. However, total capital is stil