The paper quantitatively evaluates the interaction between capital-skill complementarity and endogenous low-, medium-, and high-skilled labour supply in generating wage inequality, using a dynamic computable general equilibrium (CGE) model of the Auerbach-Kotliko¤ (1987) type. The counterfactual analysis conducted shows that the German skill premium de…ned by the 9 to 1 decile limit of earnings...

This paper deals with the question, whether in a federal state the regions should obtain the right to levy regional income taxes. It is shown that a revenue sharing system in uences the optimal income tax rates and causes distortions. In a federal system with other distorting taxes, several states and a revenue sharing system the welfare e ects of regional income taxes can be positive or negati...

The impact of migrants on the host country’ s wages has been an important issue for policy makers and has attracted much research attention. Since no consistent conclusion has been reached regarding this impact, the debate over immigration policy continues in many countries. This paper constructs a theoretical dynamic general equilibrium model by which the transitional and long-run effects of a...

An efficient new molecular orbital (MO) basis algorithm is reported implementing the pair atomic resolution of the identity approximation (PARI) to evaluate the exact exchange contribution (K) to self-consistent field methods, such as hybrid and range-separated hybrid density functionals. The PARI approximation, in which atomic orbital (AO) basis function pairs are expanded using auxiliary basi...

We develop a cluster-grid algorithm (CGA) that solves dynamic economic models on their ergodic sets and is tractable in problems with high dimensionality (hundreds of state variables) on a desktop computer. The key new feature is the use of methods from cluster analysis to approximate an ergodic set. CGA guesses a solution, simulates the model, partitions the simulated data into clusters and us...

The formulation of market equilibrium problems as mixed complementarity problems (MCP) permits integration of bottom-up programming models of the energy system into top-down general equilibrium models of the overall economy. Despite the coherence and logical appeal of the integrated MCP approach, implementation cost and dimensionality both impose limitations on its practical application. A comp...

In this paper we construct a standard CGE model to explore the impact of scaling up infrastructure in an African country. As the debate on the importance of scaling up infrastructure to stimulate growth and provide a push to African economies, some analyst raise concern on financing these infrastructures after construction and that external funding of these can create major distortion and have ...

Pseudomonas aeruginosa ParA belongs to a large subfamily of Walker-type ATPases acting as partitioning proteins in bacteria. ParA has the ability to both self-associate and interact with its partner ParB. Analysis of the deletion mutants defined the part of the protein involved in dimerization and interactions with ParB. Here, a set of ParA alanine substitution mutants in the region between E67...

In this paper we present an algorithm that deals with trade interactions within a multi-region model. In contrast to traditional approaches this algorithm is able to handle spillover externalities. We focus on technological spillovers which are due to capital trade. The algorithm of finding a paretooptimal solution in an intertemporal framework is embedded in a decomposed optimization process. ...