We prove the stability of equilibrium in a completely decentralized Walrasian general equilibrium economy in which prices are fully controlled by economic agents, with production and trade occurring out of equilibrium. Journal of Economic Literature Classifications: C62—Existence and Stability Conditions of Equilibrium D51—Exchange and Production Economies D58—Computable and Other Applied Gener...

There is a continuing debate about whether international trade is responsible for the observed skilled-unskilled wage gap. In this paper we present a general equilibrium trade model with differentiated goods. We begin with an analytical model and show how changes in relative factor returns can be decomposed into changes in commodity prices, changes in the trade balance, and changes in the facto...

On the basis of a general equilibrium approach this study simultaneously analyses the impacts of an EU Eastern enlargement scenario on agricultural markets on the one hand and migration pattern on the other hand. The focus of the analysis is given to employment related effects of interregional labor movement. Thereby an in-depth analysis is provided concerning the coaction between trade liberal...

A well-known challenge in computable general equilibrium (CGE) models is to maintain correspondence between the forecasted economic and physical quantities over time. Maintaining such a correspondence is necessary to understand how economic forecasts reflect, and are constrained by, relationships within the underlying physical system. This work develops a method for projecting global demand for...