Applying General Equilibrium

by Shoven, John B.; Whalley, John

• ISBN13: 9780521319867
• ISBN10: 0521319862
• Format: Paperback
• Copyright: 1992-05-01
• Publisher: Cambridge Univ Pr

Summary

The aim of this book is to make more widely available a body of recent research activity that has become known as applied general equilibrium analysis. The central idea underlying this work is to convert the Walrasian general equilibrium structure (formalized in the 1950s by Kenneth Arrow, Gerard Debreu and others) from an abstract representation of an economy into realistic models of actual economies. Numerical, empirically based general equilibrium models can then be used to evaluate concrete policy options by specifying production and demand parameters and incorporating data reflective of real economies. Shoven and Whalley describe all aspects of developing applied general equilibrium models, including developing an appropriate equilibrium structure, calibrating the model, compiling counterfactual equilibria, and interpreting results. The authors contend that the Walrasian general equilibrium model provides an ideal framework for appraising the effects of policy changes on resource allocation, assessing who gains and who loses, and the policy impacts not well covered by empirical macro models. The applications in the book illustrate a number of ways in which fresh insights are provided in long standing policy controversies.

Table of Contents

Preface	vii
Introduction	1	(8)
Part I Techniques
General equilibrium theory	9	(28)
Computing general equilibria	37	(34)
Part II Applying the techniques
Designing an applied general equilibrium model	71	(32)
Using applied general equilibrium models	103	(31)
A Harberger tax-model application	134	(19)
A general equilibrium model of U.S. tax policies	153	(44)
Part III Policy applications
Global trade models	197	(33)
Single-country trade modeling	230	(26)
Analysis of price controls	256	(23)
Conclusion	279	(4)
References	283	(8)
Index	291