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Now in a new edition, this acclaimed book provides policy analysts and graduate students with an overview of the latest methods for testing the economic implications of development policy options. Included are theories and methods for the analysis of consumer demand, producer behavior, supply response, behavior and welfare under risk, household models, price distortions and partial equilibrium analysis, real exchange rate analysis, transaction costs and agrarian institutions, social accounting matrices, multimarket models, and computable general equilibrium models. Praise for the first edition: "Sadoulet and de Janvry do a good job in clarifying how intricate the measurement of economic phenomena often is, and in showing practitioners how to use available data to analyze policy effects. The book is recommended for all those who are involved in agricultural development policy but are not at home with present-day quantitative analysis. As such, it is a very useful complement to many textbooks on rural development and agricultural development policy." --European Review of Agricultural Economics "A landmark textbook which we would encourage all graduate students to read and grapple with. It draws on a wide ranging and up-to-date review of the literature. For professional agricultural economists working in development it would be an excellent starting point for those wishing to explore new ground or to see how the field has developed over the last few years."--Journal of Agricultural Economics