Search results for "General equilibrium"

Biproportional methods of structural change analysis: A typological survey

2004

International audience; Analysts often are interested in learning how much an exchange system has changed over time or how two different exchange systems differ. Identifying structural difference in exchange matrices can be performed using either 'directed' or 'undirected' methods. Directed methods are based on the computation and comparison of column- or row-normalizations of the matrices. The choice of row or column for the normalization implies a specific direction of the exchanges, so that the column-wise normalized results should not be compared to the row-wise normalized results. In this category fall the simple comparison of coefficient matrices and the causative method. Undirected m…

Unemployment and Vacancy Dynamics with Imperfect Financial Markets

2018

This paper proposes a simple general equilibrium model with labour market frictions and an imperfect financial market. The aim of the paper is to analyse the transitional dynamics of unemployment and vacancies when financial constraints are in place. We model the financial sector as a monopolistically competitive banking sector that intermediates financial capital between firms. This structure implies a per period financial resource constraint which has a closed form solution and describes the transition path of unemployment and vacancies to their steady state values. We show that the transition path crucially depends on the degree of wage flexibility. When wages do not depend on the unempl…

Gains from Trade and Efficiency under Monopolistic Competition: A Variable Elasticity Case

2006

We present a general equilibrium model of monopolistic competition with variable demand elasticities and investigate the impact of free trade on welfare and efficiency. First, contrary to the constant elasticity case, in which all gains from trade are due to increasing product diversity, our model features gains from pro-competitive effects. Second, we prove that the market outcome is not efficient because too many firms operate at an inefficiently small scale. Last, we illustrate that free trade raises efficiency by reducing the gap between the equilibrium utility and the optimal utility.

A Global Perspective on Effectiveness of Aid for Trade

2012

Recent global initiatives on debt relief and development assistance call for increasing aid for trade to the poorest countries. The paper applies a multi-country computable general equilibrium model to measure the effectiveness of alternative aid for trade categories. The findings show that aid for trade policies expand trade and alleviate international income inequalities in the recipient countries, that will benefit mainly from aid for trade adjustment and technical assistance.

MACROECONOMI EFFECTS OF PUBLIC HEALTH EXPENDITURE IN THE UNITED STATES

2009

Liberalizing Immigration Policies for the UK Agricultural Sector in the Post-Brexit Era

2022

We investigate the effects of immigration policies on the UK agricultural sector under the new post-Brexit deal through a computable general equilibrium framework. We consider bilateral flows of migrants and frictions as part of capital and labor mobility to compare the point-based immigration system to open immigration policies in terms of their impacts on agriculture. We also integrate the GTAP-GMig2 immigration model with the GTAP-AGR agriculture model. Our findings show that liberal immigration policies have positive effects on production, farmers’ income, and overall welfare. The benefits increase if these policies are combined with reduced bureaucracy and lower behind-the-border costs…

Public infrastructure investment and taxation: the case of transport policy in the European Union

2009

THE CAROUSEL VALUE-ADDED TAX FRAUD IN THE EUROPEAN EMISSION TRADING SYSTEM

2012

n this article, we analyse the effects of the carousel value-added tax fraud in the European carbon market and the legislative measures that the EU Member States could adopt to deal with this phenomena. We use a computable general equilibrium model, called GTAP-E and the version 6 of the GTAP database to evaluate the economy-wide and terms of trade effects. The policy test has been designed for five European countries: Belgium, France, Germany, Italy, Netherlands and the United Kingdom. According to our findings, the legislative measures aimed to remove the VAT fraud in the European Emission Trading System will have positive effects in terms of GDP and welfare in the selected EU Member Stat…

A macroeconomic analysis of the public investments in European combined transport

2009

Intermodal transport has been recognized as a priority by the European Union, that has defined different budget allocations of investments to improve the shifting from road to intermodal transport, which is more sustainable. In this context, the main aim of the paper is to discuss the macroeconomic effects, in terms of economic growth, welfare and trade, of these public investments for combined transport, which aspects have been neglected in literature. A multi-country computable general equilibrium model has been used. The main results have been that the European Union benefits from these investments, but at international level, USA and Japan would lose in terms of welfare. Furthermore, th…

Biproportional Method for Analysing Interindustry Dynamics: the case of France

1990

Two elements are being presented in this paper: (1) A new and original method for analysing matrix dynamics, called the synthetical biproportional projector method (SBP), which can be used to project input–output tables and compare one with another. (2) Some results for France for the important period 1970–85. The paper starts with the observation that no systematic study of the change in the French productive structure as displayed In the input–output tables (tableaux entries-sorties in France) has ever been made. This is unfortunate, since a complete series of data is now available concerning a key period of the French economic evolution including the petroleum crisis, European integratio…