Applied General Equilibrium Analysis Research Articles

Lobbying Incentives and the Pattern of Protection in Rich and Poor Countries

In seeking to explain why poor countries tend to choose policies that tax agriculture relative to manufacturing while rich countries do the opposite, archetypical parameters for a poor agrarian economy and a rich industrial one are inserted in a computable general equilibrium model to simulate the medium-term effects on income distribution of policies that distort the relative prices of tradables. The model includes a non-tradables sector and intermediate inputs, realistic features that ensure even greater skewness in the distributional effects of protection than simpler models suggest. The magnitude of the results helps explain the tendency for countries to change gradually from taxing to subsidizing agriculture relative to manufacturing as their economies develop. The paper draws out the implications of the analysis for agricultural and trade policy reform in the 1990s.(This abstract was borrowed from another version of this item.)

An Applied General Equilibrium (AGE) analysis of a policy designed to reduce the household consumption of wood in the Sudan

The Sudan, along with all Sahelian countries, faces urgent environmental problems caused, in part, by the clear-cutting of scrub for firewood. In this paper, we analyze the economic consequences of a policy often proposed to reduce the consumption of firewood. Specifically, we simulate the policy of introducing more efficient wood burning stoves into households by using an Applied General Equilibrium (AGE) model. The results indicate that the anticipated reduction in the economy-wide demand for wood, based on the increase in the technical efficiency of the stoves, is not fully realized.

Applied General Equilibrium Analysis on Effects of Motorway Improvement in Japan

In this paper we have studied effects of motorway improvement in Japan. In this study we used a computable general equilibrium model which have been proposed for impact studies of regional policies. By using this operational model based on micro economic theory, we are able to study impacts not only the changes of demand and supply, but also the change of price, income, utility and so on. Through this study, the following things have been appeard. Though motorway network was constructed rapidly, it is appeared that in delayed case of motorway construction industries such a electric machinery didn't located in rural area. Moreover, in early step of motorway construction, its benefits were imputed to a few regions where motorway had been constructed, but as motorways had been constructed more and more, the benefits were spread to all regions.

The Economic Effects of Reduced Defense Expenditures: An Applied General Equilibrium Analysis

This paper employs an applied general equilibrium model to simulate the long-run effects of reductions in U.S. defense expenditures. In the long-run these reductions significantly affect only the output of the defense and government industries, and do not significantly affect the distribution of income or the relative price of capital and labor. The structure of the tax or expenditure changes which accompany defense reductions may cause large allocative and distributional effects. Thus, the fiscal decisions which accompany defense expenditure reductions are the key to determining their impact.

Equilibria in the Context of Infrastructure Planning and Applied General Equilibrium Analysis

The concept of equilibria is relevant to infrastructure plan-ning in helping us understand the nature of the problems. However, the perception of equilibria differs largely depending on the case, and thus, it may be far from consolidated. This article is to reconsider this with the specific reference to traffic assignments and land use. As for the economic market, the Walrasian equilibrium is theoretically important, but the applied general equilibrium (AGE) models have succeeded in identifying it numerically. As their construction may also be useful in the present context, we provide a brief introduction to the model and its solution procedure. In addition, we discuss three models on regional economies and/or interregional transactions, which have been developed under their influence.

Homothetic and Non-Homothetic Scale Economies in Applied General Equilibrium Analysis

Oligopolists in the Harris GET model employ a homothetic or non-homothetic CES decreasing cost function. The properties of the function are discussed and its empirical relevance is analysed in the context of a multilateral free trade simulation. Results suggest that scale economies that do not rapidly diminish with increases in production run lengths (as occurs in the fixed cost paradigm) generate relatively large welfare and output changes under the simulation. Also, factor bias, as a departure from a homothetic technology, affects in an empirically significant manner both the optimal input ratios and the productive efficiency. Economies d'echelle homothethiques et non-homothve'thiques dans une analyse d'equilibre general appliqee. Les oligopoleurs dans le modele de commerce international en equilibre general du type utilise par d' Harris ont une fonction de couits decroissants ancree dans une fonction de production homothethique ou non-homothetique qui a une elasticit6 de substitution constante. L'auteur analyse les proprieties de cette fonction et sa pertinence au plan empirique dans le cadre d'une simulation d'un regime de libre-echange multilateral. Les resultats suggerent que si les economies d'echelle ne diminuent pas rapidement avec 1'accroissement du volume de production (comme cela se passe dans la cadre du paradigme des couits fixes), cela entraine des changements relativement importants dans les niveaux de production et de bien-etre dans la simulation. De plus, le biais en faveur d'un facteur de production, en tant que deviation par rapport 'a technologie homothetique, affecte d'une

Economic Effects of Including Services in the Sales Tax Base: an Applied General Equilibrium Analysis

An applied general equilibrium model is employed to determine the effects of including additional services in the sales tax base. This approach allows the incidence of the base-broadening policy to be determined when all prices and quantities are variable. The base-broadening policy is a potential Pareto-improvemen, its differential incidence is progressive, and the policy reduces (increases) the quantity of labor supplied by the lower (higher) income households. The latter result, upward-sloping labor supply curves with respect to both the cost of living and the wage, is surpriseng. The source of this result is that the income effect on labor-leisure choice of a change in the cost of living is larger than the income effect of a change in the wage.

Applied general equilibrium analysis and perspective on growth performance

This paper focuses on growth accounting, the technique widely used to evaluate growth performance. In this paper we argue not only that recently developed applied general equilibrium techniques provide a tractable multisectoral framework as an alternative approach for analyzing growth performance, but that perspectives on the determination of growth can be quite different. The analytical structure upon which growth accounting is based is a one-sector model which excludes resource misallocation effects caused by changing institutional arrangements, and any attempts to incorporate these into the approach are inevitably ad hoc. We suggest that these may be important for understanding the behavior of economies over time because of recent work which suggests that there may be large costs associated with distortions which generate idle resources or wasteful resource use. These effects can lead to dramatically different policy implications in an analysis of growth performance compared to a traditional growth accounting approach. We illustrate our approach by examining growth experience in three countries: India, the United States, and the Soviet Union.

Reviews

Book reviewed in this article: Analyzing Redistribution Policies: A Study Using Australian Data. by Nanak Kakwani (Cambridge University Ress, Cambridge, 1986) Wealth and Welfare: Collected Essays on Economic Theory, Volume 1. by J. R. Hicks (Blackwell, Oxford, 1986) India's Economic Development Strategies, edited by 3. N. Mongia (Allied Publishers. India, in co‐edition with D. Reidel, Dordrecht. Holland, 1985) Farm Policy in Australia, by R. K. Hefford (University of Queensland Press, St Lucia. 1985) New Developments in Applied General Equilibrium Analysis, edited by J. Piggott and J. Whalley (Cambridge University Press, Cambridge, 1986)

New Developments in Applied General Equilibrium Analysis.

Journal Article New Developments in Applied General Equilibrium Analysis Get access New Developments in Applied General Equilibrium Analysis. Edited by JOHN PIGGOT and JOHN WHALLEY. (Cambridge: Cambridge University Press, 1985. Pp. 465. £25.00 hardback.) Timothy J. Kehoe Timothy J. Kehoe Clare College, Cambridge Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 97, Issue 386, 1 June 1987, Pages 506–508, https://doi.org/10.2307/2232898 Published: 01 June 1987