nep-cmp New Economics Papers
on Computational Economics
Issue of 2015‒05‒02
five papers chosen by

  1. Market Structure or Traders' Behaviour? An Assessment of Flash Crash Phenomena and their Regulation based on a Multi-agent Simulation By Nathalie Oriol; Iryna Veryzhenko
  2. Targeted carbon tariffs - Carbon leakage and welfare effects By Christoph Böhringer; Brita Bye; Taran Fæhn; Knut Einar Rosendahl
  3. The emission reduction effect and economic impact of an energy tax vs. a carbon tax in China : a dynamic CGE model analysis By Zou, Lele; Xue, Jinjun; Fox, Alan; Meng, Bo; Shibata, Tsubasa
  4. Perspectives on integrating a computer algebra system into advanced calculus curricula By Halkos, George; Tsilika, Kyriaki
  5. Endogenous Foreign Capital Flow in a CGE Model for Brazil: the Role of International Reserves By Wilfredo Leiva Maldonado; Octávio Augusto Fontes Tourinho; Marcos Valli

  1. By: Nathalie Oriol (University of Nice Sophia Antipolis, France; GREDEG CNRS); Iryna Veryzhenko (Labex ReFi; LIRSA-CNAM)
    Abstract: This paper aims at studying the flash crash caused by an operational shock with different market participants. We reproduce this shock in artificial market framework to study market quality in different scenarios, with or without strategic traders. We show that traders’ srategies influence the magnitude of the collapse. But, with the help of zero-intelligence traders framework, we show that despite the absence of market makers, the order-driven market is resilient and favors a price recovery. We find that a short-sales ban imposed by regulator reduces short-term volatility.
    Keywords: Agent-based Modeling, Zero-intelligence Trader, Limit order book, Technical trading, Flash crash
    JEL: G1 C63
    Date: 2015–04
  2. By: Christoph Böhringer (Carl von Ossietzky Universität Oldenburg, Institut für Volkswirtschaftslehre & ZenTra); Brita Bye (Statistics Norway, Research Department); Taran Fæhn (Statistics Norway, Research Department); Knut Einar Rosendahl (Norwegian University of Life Sciences, School of Economics and Business)
    Abstract: Climate effects of unilateral carbon policies are undermined by carbon leakage. To counteract leakage and increase global cost-effectiveness carbon tariffs can be imposed on the emissions embodied in imports from non-regulating regions. We present a theoretical analysis on the economic incentives for emission abatement of producers subjected to carbon tariffs. We quantify the impacts of different carbon tariff designs by an empirically based multi-sector, multi-region CGE model of the global economy. We find that firm-targeted tariffs can deliver much stronger leakage reduction and higher efficiency gains than tariff designs operated at the industry level. In particular, because the exporters are able to reduce their carbon tariffs by adjusting emissions, their competitiveness and the overall welfare of their economies will be less randomly and less adversely affected than in previously studied carbon tariff regimes. This beneficial distributional impact could facilitate a higher degree of legitimacy and legality of carbon tariffs.
    Keywords: carbon leakage, border carbon adjustment, carbon tariffs, computable general equilibrium (CGE)
    JEL: Q43 Q54 H2 D61
    Date: 2015–04
  3. By: Zou, Lele; Xue, Jinjun; Fox, Alan; Meng, Bo; Shibata, Tsubasa
    Abstract: Chinese government commits to reach its peak carbon emissions before 2030, which requires China to implement new policies. Using a CGE model, this study conducts simulation studies on the functions of an energy tax and a carbon tax and analyzes their effects on macro-economic indices. The Chinese economy is affected at an acceptable level by the two taxes. GDP will lose less than 0.8% with a carbon tax of 100, 50, or 10 RMB/ton CO2 or 5% of the delivery price of an energy tax. Thus, the loss of real disposable personal income is smaller. Compared with implementing a single tax, a combined carbon and energy tax induces more emission reductions with relatively smaller economic costs. With these taxes, the domestic competitiveness of energy intensive industries is improved. Additionally, we found that the sooner such taxes are launched, the smaller the economic costs and the more significant the achieved emission reductions.
    Keywords: China, Energy policy, Environmental policy, Taxation, Climatic change, Econometric model, Economic conditions, Energy tax, Carbon tax, Climate change, CGE model, Energy intensive industry
    JEL: C13 C15 E37 J21 K32 Q54 C54 O44
    Date: 2015–01
  4. By: Halkos, George; Tsilika, Kyriaki
    Abstract: We introduce a topic in the intersection of symbolic mathematics and computation, concerning topics in multivariable Optimization and Dynamic Analysis. Our computational approach gives emphasis to mathematical methodology and aims at both symbolic and numerical results as implemented by a powerful digital mathematical tool, CAS software Xcas. This work could be used as guidance to develop course contents in advanced calculus curricula, to conduct individual or collaborative projects for programming related objectives, as Xcas is freely available to users and institutions. Furthermore, it could assist educators to reproduce calculus methodologies by generating automatically, in one entry, abstract calculus formulations.
    Keywords: Symbolic computations; computer-based education; Xcas computer software.
    JEL: C02 C62 C63 C88
    Date: 2014–11
  5. By: Wilfredo Leiva Maldonado; Octávio Augusto Fontes Tourinho; Marcos Valli
    Abstract: In this paper we model foreign capital flow to Brazil as stemming from an investment decision that whose risk depends on the expected rate of loss of foreign reserves. This motivates the estimation of an empirical relationship between these two variables that is valid for “normal” periods (when there is no foreign exchange crisis) which is used to calculate the capital flow associated with a given expected rate of foreign reserves loss. This empirical relationship is then introduced in a static General Equilibrium Model for Brazil which has exogenous foreign capital flow and follows a relatively standard specification, to produce a version of it with endogenous capital flow. After employing the inverse of the estimated relationship to calculate the difference between the expected and the realized values of the reserve loss in 1998, and using it to adjust the base year data, we recalibrate the model and compare the response of the two versions of the model to a simulation of the implementation of two free trade agreements: with the Americas (ALCA) and with the European Union. The main conclusion is that the inclusion of endogenous foreign capital flow in the model significantly amplifies, and in some cases changes, the real effects of these free trade agreements. Neste artigo admitimos que o fluxo de capital externo para o Brasil subordina-se a uma decisão de investimento cujo nível de risco depende da taxa esperada de perda de reservas internacionais. Isso foi motivado pela estimação que fazemos de uma relação empírica entre essas duas variáveis que é válida para períodos em que não há crise de balanço de pagamentos. Essa relação foi então introduzida em um modelo estático de equilíbrio geral aplicado, um CGE, que havia sido anteriormente desenvolvido no IPEA para o Brasil, para produzir uma versão com fluxo de capital externo endógeno. Depois de ajustar a calibragem do ano-base do modelo (1998) para levar em conta a inclusão dessa equação nele, o artigo compara a resposta das duas versões do modelo à simulação da implementação de dois acordos de livre-comércio: o Alca e o acordo com a União Européia. A principal conclusão é que a endogeneização do fluxo de capital externo amplia o efeito simulado sobre a economia real desses acordos de livrecomércio.
    Date: 2015–01

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