Handbook of Computable General Equilibrium Modeling

by Dixon; Jorgenson

• ISBN13: 9780444536341
• ISBN10: 0444536345
• eBook ISBN(s): 9780444536358
• Format: Hardcover
• Copyright: 2012-11-16
• Publisher: Elsevier Science

Summary

In this collection of 17 articles, top scholars synthesize and analyze scholarship on this widely used tool of policy analysis, setting forth its accomplishments, difficulties, and means of implementation. Though CGE modeling does not play a prominent role in top US graduate schools, it is employed universally in the development of economic policy. This collection is particularly important because it presents a history of modeling applications and examines competing points of view. Presents coherent summaries of CGE theories that inform major model types Covers the construction of CGE databases, model solving, and computer-assisted interpretation of results Shows how CGE modeling has made a contribution to economic policy

Table of Contents

Contributors	p. ix
Introduction to the Series	p. xiii
Preface	p. xv
Contents of All Volumes	p. xvii
Introduction	p. 1
Overview	p. 1
Single-Country Models	p. 2
Global Models	p. 9
Technical Aspects of CGE Modeling: Data, Parameter Estimation, Computation and Validation	p. 12
Current Cutting-Edge Methodological Areas	p. 16
References	p. 21
The MONASH Style of Computable General Equilibrium Modeling: A Framework for Practical Policy Analysis	p. 23
Introduction	p. 24
Telling a CGE Story	p. 28
From Johansen to ORANI	p. 42
Extending Johansen's Computational Framework: The Mathematical Structure of a MONASH Model	p. 52
Responding to the Needs of CGE Consumers: The Four Closure Approach	p. 80
Concluding Remarks	p. 94
Appendix: Theoretical Justification for the Johansen/Euler Solution Method	p. 96
References	p. 100
Computable General Equilibrium Assessments of Fiscal Sustainability in Norway	p. 105
Introduction	p. 105
Model Structure	p. 108
Evaluating Fiscal Sustainability	p. 115
Sensitivity of the Fiscal Prospects to Variations in Economic Growth and Terms of Trade	p. 121
Norwegian Public Pension Reform	p. 129
Demographic Uncertainty	p. 135
Increasing Prefunding Through a Stricter Fiscal Policy Rule	p. 144
Final Remarks	p. 146
Appendix	p. 148
References	p. 156
MAMS - A Computable General Equilibrium Model for Developing Country Strategy Analysis	p. 159
Introduction	p. 159
Context and Main Contributions of MAMS	p. 161
Model Design	p. 164
Mathematical Structure of MAMS	p. 166
MAMS Database	p. 229
User-friendly Interface	p. 238
Applications: Policy Issues and Insights	p. 245
Conclusion	p. 268
References	p. 270
Contribution of Computable General Equilibrium Modeling to Policy Formulation in Developing Countries	p. 277
Introduction	p. 277
Types of CGE Models for Development Policy	p. 279
CGE Models and Policy Formulation	p. 289
Conclusions	p. 297
References	p. 298
Putting Services and Foreign Direct Investment with Endogenous Productivity Effects in Computable General Equilibrium Models	p. 303
Introduction	p. 304
Modeling Services and FDI in a Stylized Small CGE Model	p. 309
Impart of Liberalizing Barriers to FDI in Services: The Case of Russian Accession to the World Trade Organization	p. 320
Poverty Effects of Russia's WTO Accession: Modeling "Real" Households with FDI in Services and Endogenous Productivity Effects	p. 352
Policy Imparts and Other Model Applications and Extensions	p. 368
References	p. 372
Regional Computable General Equilibrium Modeling	p. 379
Introduction	p. 379
What Regional Models Can Tell Us	p. 381
Short Review of the Development of Regional CGE Models	p. 393
A Modern Multiregional CGE Model	p. 408
Constructing (Multi)regional Databases	p. 432
Simulations and Interpretation of Multiregional Model Mechanisms	p. 435
Concluding Remarks	p. 467
References	p. 468
Energy, the Environment and US Economic Growth	p. 477
Introduction	p. 477
IGEM	p. 483
Intertemporal Equilibrium and Economic Growth	p. 516
Welfare Measurement	p. 522
Evaluation of Climate Policy	p. 526
Conclusions	p. 548
References	p. 550
Computable General Equilibrium Modeling of Environmental Issues in Australia: Economic Impacts of an Emissions Trading Scheme	p. 553
Introduction	p. 554
MMRF	p. 557
Additional Enhancement for ETS Modeling	p. 568
Base Case	p. 582
ETS Simulation Design	p. 599
Economic Effects of the ETS	p. 609
Conclusion	p. 632
Appendix: Stylized Model	p. 639
References	p. 655
Taxation, Efficiency and Economic Growth	p. 659
Introduction	p. 659
Modeling Economic Growth	p. 666
Modeling Consumer and Producer Behavior	p. 692
Economic Impact of Tax Reform	p. 711
Income Tax Reform	p. 720
Consumption Tax Reform	p. 730
Conclusions	p. 739
References	p. 740
Dynamic Overlapping Generations Computable General Equilibrium Models and the Analysis of Tax Policy: The Diamond-Zodrow Model	p. 743
Introduction	p. 744
Brief History of OLG-CGE Modeling of Tax Reform	p. 745
Overview of the DZ model	p. 756
Applications of the DZ Model	p. 759
Conclusion	p. 790
Appendix	p. 791
References	p. 809
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