This report summarizes work completed to date on macro models of the Thai economy. The project is a cooperative one conducted by the Division of Agricultural Economics (DAE) of the Ministry of Agriculture and Cooperatives, Royal Thai Government, and the Center for Agricultural and Rural Development (CARD) and the Department of Economics of Iowa State University. Funded by the Agency for International Development and the Royal Thai Government, it is one phase of a sector analysis project being undertaken in the DAE to provide models which can aid development and policies, particularly for Thai agriculture.

A series of macro models for the Thai economy have been undertaken to supplement the various models being developed for the agricultural sector of Thailand. These activities were undertaken not only because of the importance of national economic policies on employment, prices, and other variables in agriculture, but also because various policies enacted in behalf of agriculture also impact on other sectors of the economy.

The model reported is the first generation of a set of macro economic models which may be specified and quantified for the Thai economy. The current model is now being linked with a national programming model developed for the agricultural sector.