nep-cmp New Economics Papers
on Computational Economics
Issue of 2009‒10‒24
six papers chosen by
Stan Miles
Thompson Rivers University

  1. Regional inequality and growth: the role of interregional trade in the Brazilian economy By Aline Souza Magalhães; Edson Domingues
  2. Comércio interestadual brasileiro do setor agropecuário: uma análise de equilíbrio geral computável By Aline Souza Magalhães; Edson Domingues
  3. A 'Live' Version of the Specific Factors Model in Excel By John Gilbert
  4. Modeling phase changes of road networks By Arthur Huang; David Levinson
  5. Evaluación de los efectos de la remoción de medidas para-arancelarias sobre las exportaciones argentinas de productos textiles By León, Sonia M.; Roitman, Mauricio E.; Romero, Carlos A.
  6. Subsidising carbon capture. Effects on energy prices and market shares in the power market By Finn Roar Aune, Gang Liu, Knut Einar Rosendahl and Eirik Lund Sagen

  1. By: Aline Souza Magalhães (Cedeplar-UFMG); Edson Domingues (Cedeplar-UFMG)
    Abstract: This paper deals with interregional trade in the Brazilian Economy, estimating its role on efficiency, international competitiveness and regional inequality. Our modeling encompasses much detail. Firstly, we use a large-scale multi-regional computable general equilibrium (CGE) model of Brazil. The model is bottom-up for Brazil's 27 states. Despite the high level of regional disaggregation, the level of sectoral disaggregation is also high, at 36 sectors. Applying the CGE model in simulation exercises, we explore the impacts of reducing transport costs among Brazilian states, identifying the most relevant links for different economic goals (national growth, production costs and regional inequality). The procedure is similar to the “field of influence” approach in the input-output literature (Hewings et al, 2005). We find that trade among most developed states have impact on national growth and international competitiveness, but can also increase regional inequality.
    Keywords: CGE modeling, regional trade, inequality
    JEL: R11 R13
    Date: 2009–09
  2. By: Aline Souza Magalhães (Cedeplar-UFMG); Edson Domingues (Cedeplar-UFMG)
    Abstract: Information about inter-regional trade is very unusual in most countries, including Brazil. This paper explores some features about inter-regional trade in Brazil based on empirical trade data incorporated in an inter-regional computable general equilibrium (CGE) model. Furthermore, considering the interstate system in Brazil, studies show the need for greater national trade integration, particularly by the fact that the interstate flows have a relatively higher for less developed states of the country. In this sense, the article aims to capture the importance of inter-regional trade flows in the agricultural sector between the Brazilian states and measure the most relevant state interconnections, through CGE simulations. Also, assess which flows from agricultural activity (between states or regions) have a greater impact in terms of efficiency (costs and growth) and equity (regional development and inequality). For such methodology is used as an inter-regional computable general equilibrium model f or Brazil (IMAGEM-B), which explores aspects of the above simulations and analysis of impacts.
    Keywords: Trade Interstate, Computable General Equilibrium, Growth, Inequality Regional, National Welfare
    JEL: R11 R13
    Date: 2009–09
  3. By: John Gilbert (Department of Economics and Finance, Utah State University)
    Abstract: We present a numerical version of the specific factors model of production/trade in a small economy, built in Excel. The model features the most common graphical devices used to explain the model properties. It differs from earlier work in that the solution is embedded in the sheet, making the use of the Solver add-in unnecessary. The equilibrium values and graphics respond instantly to changes in parameters/exogenous variables. The model can be used to demonstrate the usual properties (price-factor price relations, etc.) of the specific factors model.
    Keywords: Specific factors model, Excel
    JEL: A2 D5 F1
    Date: 2009–10–11
  4. By: Arthur Huang; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: Adopting an agent-based approach, this paper explores the topological evolution of road networks from a microscopic perspective. We assume a decentralized decision-making mechanism where roads are built by self-interested land parcel owners. By building roads, parcel owners hope to increase their parcelsÕ accessibility and economic value. The simulation model is performed on a grid-like land use layer with a downtown in the center, whose structure is similar to the early form of many Midwestern and Western (US) cities. The topological attributes for the networks are evaluated by multiple centrality measures such as degree centrality, closeness centrality, and betweenness centrality. Our findings disclose that the growth of road network experiences an evolutionary process where tree-like structure first emerges around the centered parcel before the network pushes outward to the periphery. In addition, road network topology undergoes obvious phase changes as the economic values of parcels vary. The results demonstrate that even without a centralized authority, road networks have the property of self-organization and evolution; furthermore, the rise-and-fall of places in terms of their economic/social values may considerably impact road network topology.
    Keywords: road network, land parcel, network evolution, network growth, phase change
    JEL: D85 R48 R51 R52 R53 H32 H41
    Date: 2009
  5. By: León, Sonia M.; Roitman, Mauricio E.; Romero, Carlos A.
    Abstract: This paper offers a quantification of price differentials not explained by tariff policy and the assessment of efficiency costs burned on different economic agents involved in textile products trade between Argentina (exporter) and Brazil (domestic producer). Simulations are carried out to show the effects of the distortion of price differentials, considered like non tariff barriers or a set of them and others obstacle to trade. From the removal of non tariff barriers results that consumers and exporters obtain grater consumer surplus and profits, respectively, while domestic producers loose part of their producer surplus. Consumers and exporters are better because of changes in terms of trade; in some products consumers obtain graters benefits than exporters and vice versa. Likewise, changes in elasticities (direct elasticity of supply and demand) were simulated to observe distortions in previous results.
    Keywords: Textile sector; computable partial equilibrium; commercial policy
    JEL: C69 L67 F13
    Date: 2009–03
  6. By: Finn Roar Aune, Gang Liu, Knut Einar Rosendahl and Eirik Lund Sagen (Statistics Norway)
    Abstract: This paper examines how ambitious climate policies and subsidies to carbon capture may affect international energy prices and market shares in the power market. A detailed numerical model of the international energy markets is used. We first conclude that an ambitious climate policy alone will have substantial effects in the power market, with considerable growth in renewable power production and eventually use of carbon capture. Gas power production will also benefit from such a policy. Subsidising carbon capture and storage (CCS) will significantly accelerate the use of this technology. Nevertheless, total production of coal and gas power (with or without CCS) is only marginally increased, as the subsidy mainly leads to installation of CCS equipment on existing plants, reducing the efficiency from these plants. Consequently, electricity prices are almost unchanged, and the substantial growth in renewable power production is hardly affected by the subsidies to CCS.
    Keywords: Energy markets; Climate policy; Carbon capture
    JEL: H23 Q40 Q54
    Date: 2009–10

This nep-cmp issue is ©2009 by Stan Miles. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.