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...

 Trade liberalization is often the core attention of foreign economic strategies in developing countries. Findings in the literature confirm a significant effect of free trade on developing economies through which the economic sectors benefit from technology transfer and spillovers and increasing production capacities and input productivity leading to international competitiveness. On the other...

In this study, we use the computable general equilibrium (CGE) model to examine welfare and growth effects of expanding grain-based fuel ethanol production in China. The results show that reasonable development of grain-based fuel ethanol will accelerate China’s economy, improve rural household income, and narrow the gap between the rich and the poor. However, expanding the production of grain-...

& This study presents a framework for analyzing the interactions between aquaculture and capture fisheries in the context of ecosystem-based management. We extends a model of the economic and ecological systems in coastal New England by incorporating an aquaculture sector in a computable general equilibrium (CGE) model and by examining the forage fish and aquaculture link in a marine food web. ...

For two decades, the Thai government has been promoting ethanol and biodiesel consumption through tax measures price subsidies. Although this policy substantially increased production of biofuels, there is concern regarding its future fiscal burden. Due to constraints, planned completely terminate biofuel subsidy by 2022. This study aims at examining economy-wide impacts removing also conductin...

This paper details the construction of a large-scale computable general equilibrium (CGE) model for a single U.S. region. The model contains detailed treatment of margins and taxes, features not typically given prominence in U.S. regional CGE models. The starting point for the core of the CGE model’s data base is information from IMPLAN, producers of regional I/O data at the U.S. county and sta...

This paper describes FiFoSiM, the integrated tax benefit microsimulation and computable general equilibrium (CGE) model of the Center of Public Economics at the University of Cologne. FiFoSiM consists of three main parts. The first part is a static tax benefit microsimulation module. The second part adds a behavioural component to the model: an econometrically estimated labour supply model. The...

Climate change mitigation faces two main policy challenges: the need for global cooperation to tackle collective action problem and share burden of carbon pricing fair way following principle common but differentiated responsibility (CBRD). In this paper we explore best ways incentivize regions reduce their CO2 emissions while minimizing welfare losses low-income countries using simulations wit...