nep-cmp New Economics Papers
on Computational Economics
Issue of 2008‒03‒25
six papers chosen by
Stan Miles
Thompson Rivers University

  1. Documentation FiFoSiM: Integrated tax benefit microsimulation By Peichl, Andreas; Schaefer, Thilo
  2. Public spending and poverty reduction in an oil-based economy: The case of Yemen By Chemingui, Mohamed Abdelbasset
  3. A Fix-and-Optimize Approach for the Multi-Level Capacitated Lot Sizing Problems By Helber, Stefan; Sahling, Florian
  4. The impact of CAFTA on poverty, distribution, and growth in El Salvador: By Morley, Samuel; Nakasone, Eduardo; Pineiro, Valeria
  5. The impact of CAFTA on employment, production, and poverty in Honduras: By Morley, Samuel; Nakasone, Eduardo; Pineiro, Valeria
  6. Land Use in Computable General Equilibrium Models: An Overview By Hertel, Thomas; Rose, Steven; Tol, Richard

  1. By: Peichl, Andreas; Schaefer, Thilo
    Abstract: This paper describes FiFoSiM, the integrated tax benefit microsimulation and CGE model of the Center of Public Economics at the University of Cologne. FiFoSiM consists of three main parts. The first part is a static tax benefit microsimulation module. The second part adds a behavioural component to the model: an econometrically estimated labour supply model. The third module is a CGE model which allows the user of FiFoSiM to assess the global economic effects of policy measures. Two specific features distinguish FiFoSiM from other tax benefit models: First, the simultaneous use of two databases for the tax benefit module and second, the linkage of the tax benefit model to a CGE model.
    Keywords: FiFoSiM, microsimulation, CGE
    JEL: D58 H2 J22
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:zbw:uoccpe:7038&r=cmp
  2. By: Chemingui, Mohamed Abdelbasset
    Abstract: "This study is part of a collaborative project between the International Food Policy Research Institute and the Arab Planning Institute in Kuwait on public policy and poverty reduction in the Arab region. The purpose of this paper is to assess the impact of an increase in public spending in priority areas on economic growth and poverty reduction in Yemen. To accomplish this objective, the study builds a dynamic Computable General Equilibrium model to provide a baseline scenario of changes in the economy and poverty levels in Yemen during the period 1998-2016. Alternative scenarios are then compared to isolate the specific impact of several policies on poverty. The scenarios assume an increase in public spending devoted to three priority areas (agriculture, education, and health), which affect the economy through an increase in sectoral or economy-wide technical factor productivity. Results of public spending experiments show that targeting increased amounts of public spending towards education and health services will generate more economic growth and poverty reduction than increasing public spending solely on the agricultural sector. However, when an oil sector is a prominent part of the economy, as in Yemen, additional public spending on health and education does not improve productivity in the oil sector. Therefore, spending on agriculture becomes the most important channel for poverty reduction and economic growth. While increasing public spending in priority areas appears to be the best solution available for the government to reduce poverty during the next decade, the road is still long for Yemen to be able to achieve its Millennium Development Goals for poverty reduction. Re-allocating public expenditures from defense to key sectors appears to be an additional option for reducing poverty, given the financial constraints facing Yemen. However, in the current context of terrorism concerns, it will be difficult to convince policy-makers to reduce spending on defense and security. Seeking additional resources from international donors seems to be the only option available to increase benefits from increased public spending in the priority areas identified and assessed in this study." from Authors' Abstract
    Keywords: Public investments, Poverty reduction, economic growth,
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:701&r=cmp
  3. By: Helber, Stefan; Sahling, Florian
    Abstract: This paper presents an optimization-based solution approach for the dynamic multi-level capacitated lot sizing problem (MLCLSP) with positive lead times. The key idea is to solve a series of mixed-integer programs in an iterative fix-and-optimize algorithm. Each of these programs is optimized over all real-valued variables, but only a small subset of binary setup variables. The remaining binary setup variables are tentatively fixed to values determined in previous iterations. The resulting algorithm is transparent, flexible, accurate and relatively fast. Its solution quality outperforms those of the approaches by Tempelmeier/Derstroff and by Stadtler.
    Keywords: multi-level lot sizing, MLCLSP, lead times, Fix-and-Optimize heuristic.
    JEL: C61
    Date: 2008–03
    URL: http://d.repec.org/n?u=RePEc:han:dpaper:dp-393&r=cmp
  4. By: Morley, Samuel; Nakasone, Eduardo; Pineiro, Valeria
    Abstract: "In this paper we develop a dynamic CGE model to examine the impact of CAFTA on production, employment and poverty in El Salvador. We model four aspects of the agreement: tariff reductions, quotas, changes in the rules of origin for maquila and more generous treatment of foreign investment. The model shows that CAFTA has a small positive effect on growth, employment and poverty. Tariff reduction under CAFTA adds about .2% to the growth rate of output up to 2020. Liberalizing the rules of origin for maquila has a bigger positive effect on growth and poverty mainly because it raises the demand for exportables produced by unskilled labor. We model the foreign investment effect by assuming that capital inflows go directly to capital formation. This raises the growth rate of output by over 1% per year and lowers poverty incidence in 2020 by over 25% relative to what it would be in the baseline scenario. These simulations say something important about the growth process in a country like El Salvador in which it seems reasonable to assume that there is idle unskilled labor willing and able to work at a fixed real wage. In such an economy, growth can be increased in one of three ways. First, already employed resources can be moved to sectors where they are more productive. That is what the tariff reductions under CAFTA do, and the result is positive but small. Second, the structure of demand can be changed in such a way as to increase the demand for previously unemployed unskilled labor. That is what the maquila simulation does, because maquila uses a lot of unskilled labor relative to skilled labor and capital. Finally the supply of capital can be increased by increasing the rate of capital formation. That is what happens in the FDI simulation." from Authors' Abstract
    Keywords: CAFTA, Trade agreements, Growth, Poverty, CGE model,
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:743&r=cmp
  5. By: Morley, Samuel; Nakasone, Eduardo; Pineiro, Valeria
    Abstract: "In this paper we develop a dynamic CGE model to examine the impact of CAFTA on production, employment and poverty in Honduras. We model four aspects of the agreement: tariff reductions, quotas, changes in the rules of origin for maquila and more generous treatment of foreign investment. We first show that trade liberalization under CAFTA has a positive effect on growth, employment and poverty but the effect is small. What really matters for Honduras is the assembly (maquila) industry. CAFTA liberalized the rules of origin for imports into this industry. That raises the growth rate of output by 1.4% and reduces poverty by 11% in 2020 relative to what it would otherwise have been. Increasing capital formation through an increase in foreign investment in response to CAFTA has an even larger impact on growth, employment and poverty. These simulations say something important about the growth process in a country like Honduras in which it seems reasonable to assume that there is underemployed, unskilled labor willing and able to work more at a fixed real wage. In such an economy changing the structure of demand in favor of sectors that use a lot of unskilled labor will have a big impact on growth. That is what the maquila simulation does, because maquila uses a lot of unskilled labor relative to skilled labor and capital. Alternatively the supply of capital can be increased by increasing the rate of capital formation. Either of these two has a far larger impact on growth and poverty than tariff reductions alone." from Authors' Abstract
    Keywords: CAFTA, Growth, Poverty, CGE model,
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:fpr:ifprid:748&r=cmp
  6. By: Hertel, Thomas; Rose, Steven; Tol, Richard
    Abstract: *Chapter 1 of the forthcoming book "Economic Analysis of Land Use in Global Climate Change Policy," edited by Thomas W. Hertel, Steven Rose, and Richard S.J. Tol
    Date: 2008
    URL: http://d.repec.org/n?u=RePEc:gta:workpp:2595&r=cmp

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