This paper explores, through the use of a sequence of computable general equilibrium models, what harm or good, as measured both in terms of real output and utility, might be accomplished through coordinated perturbations in excise and income tax policy among sovereign jurisdictions. We focus on two issues: the taxation of below-retail transactions and the taxation of E-commerce across state li...

Applied general and partial equilibrium models are widely used tools for ex ante analysis of trade policy changes. However, simulation results seem to exhibit significant variation across publications, and the often criticised ‘black box’ character of applied trade models makes meaningful comparisons of simulation results very difficult. As a potential remedy, this paper presents a meta-analysi...

Since Keynes no economist would deny that expectations under uncertain conditions matter for the conduct of monetary policy, but still opinions about their formation are diverse. We build a hybrid New Keynesian Framework to analyze the in‡uence of model uncertainty on optimal interest rates under di¤erent degrees of rational forward-looking behavior, using recently developed robust control tech...

In this paper an applied general equilibrium model for the Extremadura region is presented. Our aim is to show the importance of agricultural subsidies in this economy, that it is a distinctive characteristic of this region. To achieve this purpose, we analyse the effects of a supression of these subsidies, using different scenaries related to the labour market and tax compensation. Model param...

This paper concludes the study of transition paths in the continuous-time recombinant endogenous growth model by providing numerical methods to estimate the threshold initial value of capital (a Skiba-type point) above which the economy takes off toward sustained growth in the long run, while it is doomed to stagnation otherwise. The model is based on the setting first introduced by Tsur and Ze...

This paper provides an overview of the treatment of technological change in economic models of environmental policy. Numerous economic modeling studies have confirmed the sensitivity of midand long-run climate change mitigation cost and benefit projections to assumptions about technology costs. In general, technical progress is considered to be a noneconomic, exogenous variable in global climat...

We analyze important forces that hamper the formation of successful self-enforcing agreements to mitigate global warming. The analysis combines two modules: a) a computable general equilibrium model that captures the feedback between the economy, environmental damages and the climate system and b) a game theoretic model that determines stable coalitions in the presence of free-riding incentives...

We analyze important forces that hamper the formation of successful self-enforcing agreements to mitigate global warming. The analysis combines two modules: a) an integrated assessment model that captures the feedback between the economy, environmental damages and the climate system and b) a game theoretic model that determines stable coalitions in the presence of free-riding incentives. We con...

Traditional computable general equilibrium (CGE) models based on the Armington assumption fail to capture the extensive margin of trade, and thereby underestimate the trade and welfare effects of trade opening. To address this problem, this paper introduces the Melitz (2003) theoretical framework with firm heterogeneity and fixed exporting costs into a global CGE model. Some illustrative simula...