nep-cmp New Economics Papers
on Computational Economics
Issue of 2014‒04‒18
five papers chosen by
Stan Miles
Thompson Rivers University

  1. The oil position in the Tunisian economy: Adaptation of computable general equilibrium model By Necibi, Thameur
  2. CGE analysis of trade liberalization in Thailand By durongkaveroj, wannaphong
  3. A General Equilibrium Assessment on a Compound Disaster in Northern Taiwan By Michael C. Huang; Nobuhiro Hosoe
  4. Five Crossroads on the Way to Basic Income: An Italian Tour By Colombino, Ugo
  5. Pricing of Basket Options Using Polynomial Approximations By Pablo Olivares

  1. By: Necibi, Thameur
    Abstract: This article presents several preliminary results of the real prices application on the Tunisian economy through a dynamic computable general equilibrium model. The objective is to assess the effects of the progressive dismantling policies of oil products subsidy on the economic growth, the sectoral dynamics and, to a lesser extent, on the household incomes. The simulations on the crude oil price and on the subsidies granted to oil products have redrew new structures of the prices and have modified their levels. The analysis of the impacts of this simulation studies the effects of these new prices data on the economic agents and on the economy in general.
    Keywords: Computable General Equilibrium Models, Taxation, Subsidies, Revenue, Energy, Government Policy;
    JEL: C67 C68 H30 Q43
    Date: 2014–04–10
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:55185&r=cmp
  2. By: durongkaveroj, wannaphong
    Abstract: As the world becomes interdependent in economic dimension, external sector today is widely accepted as a national economic motivator. Trade polices yield the various effects on economy. The purpose of this paper is to estimate the effects of free trade policy in Thailand to its top 5 trading partners on economic performance and the level of household income through CGE model using GTAP. The study reveals that the most worthy trading policy for Thailand, aimed at raising its national prosperity, is to remove tariff to trading partners, primarily with the E.U., followed by China and the U.S.
    Keywords: computable general equilibrium, trade liberalization, tariff
    JEL: C68 F13
    Date: 2014–04–08
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:55191&r=cmp
  3. By: Michael C. Huang (National Graduate Institute for Policy Studies); Nobuhiro Hosoe (National Graduate Institute for Policy Studies)
    Abstract: We analyze the economic impact on key sectors of a compound disaster in Taiwan. While Taiwan has high-tech export-oriented industries such as semiconductors and electronic products, three out of four nuclear power plants are located in the at-risk areas close to its capital city with industrial agglomeration. We use a computable general equilibrium (CGE) model to simulate a compound disaster in northern Taiwan. We consider the individual disaster components of labor loss, capital loss, power crisis, and finally combine them to simulate a compound disaster comprehensively. The simulation results show that Taiwan’s key sectors such as semiconductor and electric equipment would be affected severely by capital and labor losses but not by the power crisis. This implies that no electric power allocation would be needed for these industries although we are often tempted to do so in emergencies.
    Date: 2014–04
    URL: http://d.repec.org/n?u=RePEc:ngi:dpaper:14-06&r=cmp
  4. By: Colombino, Ugo (University of Turin)
    Abstract: The current Italian income support policies are defective with respect to both efficiency and equity. A more effective design must face five crucial choices: universal vs. categorical policies; transfers vs. subsidies; unconditional vs. means-tested policies; coverage; flat vs. progressive tax rules. Using a microeconometric model and a social welfare methodology, we simulate the effects of 30 versions of three basic types: guaranteed minimum income, unconditional basic income and wage. The simulation preserves fiscal neutrality and adopts a methodology that allows for market equilibrium and ensures a consistent comparative statics interpretation of the results. The social welfare optimal policy is an unconditional transfer coupled with a wage subsidy, with a total benefit amounting to about 70% of the poverty level, or – depending on the social welfare criterion – a pure unconditional transfer amounting to 100% of the poverty level.
    Keywords: income support mechanisms, basic income, guaranteed minimum income, wage subsidies, tax reform simulation
    JEL: H31 H21 C25
    Date: 2014–03
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp8087&r=cmp
  5. By: Pablo Olivares
    Abstract: In this paper we use Bernstein and Chebyshev polynomials to approximate the price of some basket options under a bivariate Black-Scholes model. The method consists in expanding the price of a univariate related contract after conditioning on the remaining underlying assets and calculating the mixed exponential-power moments of a Gaussian distribution that arise as a consequence of such approximation. Our numerical implementation on spread contracts shows the method is as accurate as a standard Monte Carlo approach at considerable lesser computational effort.
    Date: 2014–04
    URL: http://d.repec.org/n?u=RePEc:arx:papers:1404.3160&r=cmp

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