A conventional wisdom in economics is that a model dealing frictionless markets with a large number of agents always yields a Walrasian outcome. In this paper we assess the above argument in a dynamic framework by modeling centralized auction markets, and show that in such markets the outcomes are not necessarily Walrasian; the set of stationary equilibria in our model is a continuum which incl...

We consider an infinite-horizon general equilibrium model with heterogeneous agents and financial market imperfections. We investigate the role of dividend taxation on economic growth and asset price. The optimal dividend taxation is also studied.

This paper describes LaoGEM (Lao General Equilibrium Model), a 20 sector, 400 household general equilibrium model of the Lao economy, constructed specifically for the analysis of the effect of road improvement on rural poverty incidence in Laos. Unless otherwise stated, the database of the model refers to the year 2002. These features are relatively standard for comparative static general equil...

In the companion paper [2], Balasko and Shell establish existence of competitive equilibrium for a pure-distribution, overlapping-generations economy without money (see, especially, Propositions (3.10) and (3.11) in Section 3). That argument is remarkably simple, but depends critically on some strong hypotheses concerning individual tastes and endowments. In particular, it is assumed that, in a...

We estimate a medium-scale dynamic stochastic general equilibrium model of the Japanese economy following Christiano et al. [Christiano, L., Eichenbaum, M., Evans, C., 2005. Nominal rigidities and the dynamic effects of a shock to monetary policy. J. Polit. Economy 113 (1), 1–45]. By using actual capital utilization data and modifying the formulation of utilization following Greenwood et al. [G...

The influence of oceanic heat transport on the sensitivity of climate to an increase of the atmospheric CO 2 concentration is studied by comparing the CO2-induced changes of two mathematical models. The first model is a general circulation model of the coupled ocean-atmosphere system which includes ocean currents. In the second model the oceanic component of the first model is replaced by a sim...

This study estimates the extent to which embodied CO2 emissions are increased or reduced when a socioeconomic structural change occurs. Embodied CO2 emissions were estimated by input-output models (I-O models) and a general equilibrium model (GE model), and the respective results were compared. The embodied CO2 emissions differ greatly depending on the assumptions of the total system. The embod...

This paper presents the simplest possible general-equilibrium model of an open economy in which producer and consumer decisions are both intraand intertemporally consistent. Consumers maximize the present value of the utility of consumption; producers maximize the present value of profits. The model solves for the set of intertemporally consistent prices. The parsimonious structure of the model...