One assumption in the Shapley–Shubik power index is that there is no interaction nor influence among the voting members. This paper will apply the command structure of Shapley (1994) to model members’ interaction relations by simple games. An equilibrium authority distribution is then formulated by the power-in/power-out mechanism. It turns out to have much similarity to the invariant measure o...

I evaluate the welfare effects of exogenous changes in immigration policy by constructing a heterogeneous agent overlapping generations model with agents differing in age, origin, and skills. Calibrating the model to Germany, I match the main features of the social security and tax systems, and account for differences in inter-generational transmission of skills and fertility between immigrants...

In order not to see their climate mitigation efforts be in vain by the unlimited growth in China and India, the developed world has started to consider imposing border tax adjustments on imports from these fast developing countries. This paper puts this problem into a game-theoretic perspective. It sets up the problem as a game between the developed world deciding on three regimes of border tax...

We show that U.S. withdrawal from the Kyoto Protocol is straightforward under political economy considerations. The reason is that U.S. compliance costs exceed low willingness to pay for dealing with global warming in the U.S. The withdrawal had a crucial impact on the concretion of the Protocol prior to its likely ratification at the end of 2002. Remaining non-EU Parties to the Kyoto Protocol ...

Applied General Equilibrium (AGE) models are increasingly used for short-run commodity market analysis, although they are generally not designed for such purposes. This study remedies a key shortcoming of such work by incorporating a commodity stockholding model into a short-run global AGE model. An approach to calibrating and validating the model is demonstrated for the staple grains sector. I...

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...

Tax credits have been a popular way to alleviate in-work poverty. The assumption is typically that the incidence is on the claimant workers. However, economic theory suggests no particular reason to believe that this should be the case. This paper investigates the incidence of the Working Families’Tax Credit in the UK introduced in 1999, which unlike similar tax credit policies was paid through...

We present certain duality results on comparative statics on competitive rent vectors in the rental housing market model. In the model, apartments as indivisible goods are classified into a finite number of categories, and are traded for one composite commodity. Our concern is about certain general properties of the behavior of rents with parameter changes. In particular, the rent changes are i...

The phenomenon of rising wage inequality has been extensively documented in OECD countries. In the final quarter of the last century it appears to have been particularly marked in the US and UK. The drivers of rising inequality have been subject to econometric analysis and the relative roles of trade and skill-biased technical change evaluated. In this paper, we take an alternative approach, na...