|
on Computational Economics |
|
Issue of 2006‒10‒14
ten papers chosen by |
| By: | Donald J. Brown (Department of Economics, Yale University); Ravi Kannan (Computer Science, Yale University) |
| Abstract: | We propose two algorithms for deciding if the Walrasian equilibrium inequalities are solvable. These algorithms may serve as nonparametric tests for multiple calibration of applied general equilibrium models or they can be used to compute counterfactual equilibria in applied general equilibrium models defined by the Walrasian equilibrium inequalities. |
| Keywords: | Applied general equilibrium analysis, Walrasian equilibrium inequalities, Calibration |
| JEL: | C63 C68 D51 D58 |
| Date: | 2005–04 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:1508r&r=cmp |
| By: | Serajul Hoque |
| Abstract: | This paper uses a large-scale computable general equilibrium model of Bangladesh to simulate the economic effects of attracting foreign investment by improved business confidence. The simulation results indicate that if all revenue of newly arrived capital accrues to foreign investors and the government maintains budget neutrality, in the long-run this would expand GDP slightly. In general, capital-intensive sectors experience robust expansion and labour-intensive sectors suffer a contraction in output and employment. Urban households experience increases in consumption because they are relatively heavily concentrated in manufacturing sectors that are favourably affected. In contrast, rural households experience decreases in consumption because they are relatively concentrated in the agriculture sector which is adversely affected. |
| Keywords: | Business confidence foreign direct investment computable general equilibrium model Bangladesh |
| JEL: | C68 E22 F21 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:cop:wpaper:g-159&r=cmp |
| By: | Glyn Wittwer; Simon McKirdy; Ryan Wilson |
| Abstract: | A dynamic computable general equilibrium model provides a tool for analysing the regional economic consequences of a hypothetical plant pest incursion. The model is very detailed at the industry and regional level. It includes a theory of regional labour market adjustment. In our example, a hypothetical Pierce's disease incursion, direct regional economic losses are magnified by consequent depressed investment in downstream wine processing sectors. Following elimination of the disease, it takes a number of years for the region to recover fully. |
| Keywords: | plant disease, CGE modeling |
| JEL: | C68 Q11 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:cop:wpaper:g-162&r=cmp |
| By: | M.Utku Unver; John Dufffy |
| Date: | 2005–01 |
| URL: | http://d.repec.org/n?u=RePEc:pit:wpaper:260&r=cmp |
| By: | Cororaton, Caesar B. |
| Abstract: | "This paper looks at how Philippine trade reform which consists of tariff reduction and elimination of quantitative restrictions (QR) on rice imports will affect poverty within two world trade scenarios: Doha and free world trade. The impact of Doha is very small and generates biased effects against agriculture. The impact of Philippine trade reform within the Doha agenda magnifies this biased effect, making rural households worse-off compared to urban households. However, eliminating rice QR generates a set of effects where consumer price reduction dominates nominal income decline. Thus, real income improves and poverty declines across household groups, but the net effects are lower in rural than in urban households. The impact of a free world trade economy is favorable in terms of higher export prices and export demand for agriculture and agriculture-related manufacturing industries. This mitigates the biased effects against agriculture, and is therefore favorable to rural households. However, if Philippine trade reform is added to the analysis, the result switches back to the previous biased effects on agriculture and on rural households." Author's Abstract |
| Keywords: | rice, Impact analysis, Agriculture, Poverty, Computable general equilibrium (CGE), Trade reform, Doha agreement, Free trade, Rural households, Urban households, consumer prices, |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:mtiddp:96&r=cmp |
| By: | James Giesecke; G.A.Meagher |
| Abstract: | The paper uses MONASH, a dynamic computable general equilibrium model, to investigate the impact on the Australian economy of a 50 per cent increase in the skilled migrant intake over the period 2005-2025. The primary purpose of the modelling it to identify how the labour market might absorb an increase in the number of skilled visa entrants. To that end, the modelling recognises labour supply by 67 types of skill (defined as an education field classified by an education level) and 81 occupations. We find that, even with the increase in immigration heavily weighted towards skilled visa entrants, the main effect of the policy is to increase the scale of the economy. The main compositional effects are to shift economic activity towards the construction sector and sectors supplying material inputs to construction activity, raise the relative wages of workers that supply labour used intensively in construction and related sectors, reduce the relative wages of skilled labour, and increase returns to capital relative to labour. |
| Keywords: | CGE modelling, skilled immigration |
| JEL: | C68 J31 J61 |
| Date: | 2006–05 |
| URL: | http://d.repec.org/n?u=RePEc:cop:wpaper:g-157&r=cmp |
| By: | Drew Fudenberg; David K Levine |
| Date: | 2006–10–05 |
| URL: | http://d.repec.org/n?u=RePEc:cla:levarc:784828000000000683&r=cmp |
| By: | Yinhua Mai |
| Abstract: | In this paper, I use the Monash Multi-Country (MMC) model - a dynamic CGE model of China, Australia and the Rest of the World - to analyse the effects of removing border protection on wheat and rice in China. The analysis points to the possibility that removing border protection on wheat and rice may lead to an increase in rural income in China. This is due mainly to the following two factors. First, while removing border protection on wheat and rice leads to a contraction in agricultural activities, it also leads to an expansion in manufacturing and services activities. Second, on average, rural households in China obtain over half of their income from manufacturing and services activities. |
| Keywords: | China, Wheat and rice, CGE modelling, rural income |
| JEL: | C68 F14 Q17 |
| Date: | 2006–05 |
| URL: | http://d.repec.org/n?u=RePEc:cop:wpaper:g-160&r=cmp |
| By: | Victor Aguirregabiria; Gustavo Vicentini |
| Abstract: | We propose a dynamic model of an oligopoly industry characterized by spatial competition between multi-store firms. Firms compete in prices and decide where to open or close stores depending on demand conditions and the number of competitors at different locations, and on location-specific private-information shocks. We provide an algorithm to compute Markov Perfect Equilibria (MPE) in our model. We conduct several numerical experiments to study how the propensity of multi-store retailers to spatial preemptive behavior depends on the magnitude of entry costs, exit value and transportation costs. |
| Keywords: | Spatial competition; Market dynamics; Sunk costs; Spatial preemptive behavior. |
| JEL: | C73 L13 L81 R10 R30 |
| Date: | 2006–08–29 |
| URL: | http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-253&r=cmp |
| By: | Iyer, Karthik; Huhns, Michael |
| Abstract: | This paper proposes a novel solution for the n agent cake cutting (resource allocation) problem. We propose a negotiation protocol for dividing a resource among n agents and then provide an algorithm for allotting portions of the resource. We prove that this protocol can enable distribution of the resource among n agents in a fair manner. The protocol enables agents to choose portions based on their internal utility function, which they do not have to reveal. In addition to being fair, the protocol has desirable features such as being unbiased and verifiable while allocating resources. In the case where the resource is two-dimensional (a circular cake) and uniform, it is shown that each agent can get close to l/n of the whole resource. |
| Keywords: | Utility theory ; Utility function ; Bargaining ; Artificial intelligence ; Resource allocation ; Multiagent system |
| JEL: | F51 J52 C78 |
| Date: | 2005–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:145&r=cmp |