Forward-looking and myopic regional Computable General Equilibrium models: How significant is the distinction?

U.S. Greenhouse Gas Cap-and-Trade Proposals: Application of a Forward-Looking Computable General Equilibrium Model

We develop a forward-looking version of the MIT Emissions Prediction and Policy Analysis (EPPA) model, and apply it to examine the economic implications of proposals in the U.S. Congress to limit greenhouse gas (GHG) emissions. We find that the abatement path and CO2-equivalent (CO2-e) price in the forward-looking model are quite similar to that of the recursive model, implying that the simulat...

Sustainability Impact Assessment: the Use of Computable General Equilibrium Models

This paper advocates computable general equilibrium (CGE) models as an analytical framework that is suitable for assessing the impacts of policy interference on the three dimensions of Sustainable Development, i.e. environmental quality, economic performance and equity. Methodological extensions of standard CGE models are illustrated that may strengthen the role of CGE models in measuring polic...

How Forward-Looking is Optimal Monetary Policy?

We calculate optimal monetary policy rules for several variants of a simple optimizing model of the monetary transmission mechanism with sticky prices and/or wages. We show that robustly optimal rules can be represented by interest-rate feedback rules that generalize the celebrated proposal of Taylor (1993). Optimal rules, however, require that the current interest-rate operating target depend ...

A Complementarity Approach to Solving Computable General Equilibrium Models

Computable general equilibrium (CGE) models play a central role in modern economic modeling, bearing on a wide range of important applications in international climate and trade policies, growth and development of countries, national income distribution and equality studies. We formulate a canonical CGE model as a complementarity problem and introduce CIM-EARTH, a collection of open-source exte...

Land Use in Computable General Equilibrium Models: An Overview*