Frontiers in Applied General Equilibrium Modeling: In Honor of Herbert Scarf

by Edited by Timothy J. Kehoe , T. N. Srinivasan , John Whalley

• ISBN13: 9780521825252
• ISBN10: 0521825253
• Format: Hardcover
• Copyright: 2005-01-17
• Publisher: Cambridge University Press

Summary

This volume brings together twelve papers by many of the most prominent applied general equilibrium modelers honoring Herbert Scarf. The contributors discuss some traditional as well as more contemporary topics in the field, including non-convexities in economy-wide models, tax policy, developmental modeling and energy modeling. The book also covers a range of new approaches, conceptual issues and computational algorithms. An introductory chapter written by the editors maps out issues and scenarios for the future evolution of applied general equilibrium.

Table of Contents

List of Contributors	vii
Acknowledgments	xi
Introduction	1	(12)
Timothy J. Kehoe, T.N. Srinivasan, and John Whalley
Part One. General Equilibrium Theory
1 Personal Reflections on Applied General Equilibrium Models	13	(11)
Kenneth J. Arrow
2 Uniqueness of Equilibrium in the Multicountry Ricardo Model	24	(21)
Herbert Scarf and Charles A. Wilson
Part Two. Computational Methods
3 Solving Dynamic Stochastic Competitive General Equilibrium Models	45	(22)
Kenneth L. Judd
4 Mathematical Programs with Equilibrium Constraints: Automatic Reformulation and Solution via Constrained Optimization	67	(28)
Michael C. Ferris, Steven P. Dirkse, and Alexander Meeraus
Part Three. Macroeconomics and Finance
5 Nonconvexities in Quantitative General Equilibrium Studies of Business Cycles	95	(24)
Edward C. Prescott
6 Lotteries for Consumers versus Lotteries for Firms	119	(8)
Lars Ljungqvist and Thomas J. Sargent
7 Default and Aggregate Fluctuations in Storage Economies	127	(24)
Makoto Nakajima and José-Victor Rios-Rull
8 New Applications of General Equilibrium to Finance: Default and Collateral	151	(22)
Aloisio Araujo and Mário Páscoa
Part Four. Public Finance, Development, and Climate Change
9 Efficient Taxation of Income	173	(46)
Dale W. Jorgenson and Kun-Young Yun
10 Representative versus Real Households in the Macroeconomic Modeling of Inequality	219	(36)
François Bourguignon, Anne-Sophie Robilliard, and Sherman Robinson
11 General Equilibrium Modeling for Global Climate Change	255	(22)
Alan S. Manne
Part Five. General Equilibrium Restrictions and Estimation of Hedonic Models
12 Simulation and Estimation of Hedonic Models	277	(64)
James Heckman, Rosa Matzkin, and Lars Nesheim
Part Six. Policy Uses and Performance of AGE Models
13 An Evaluation of the Performance of Applied General Equilibrium Models on the Impact of NAFTA	341	(37)
Timothy J. Kehoe
14 Decompositional Analysis Using Numerical Equilibrium Models: Illustrations from Trade Literature	378	(24)
Lisandro Abrego and John Whalley
15 The Influence of Computable General Equilibrium Models on Policy	402	(27)
Shantayanan Devarajan and Sherman Robinson
Index	429