Most debates about the role of tariff cuts on the level of employment and rate of wages in labor market have come out of well-known Hecscher – Ohlin and Stopler – Samuelson (HOS) theorems. Considering the fact that we have divided the workforce into skilled and unskilled labors the present paper assesses the impacts of tariff cuts on labor market indicators in Iran. To address these issues...

Traditional computable general equilibrium (CGE) models have ignored uncertainty ─ even when applied to fields such as environmental modeling that are replete with economic uncertainty. In contrast, many control theory models have focused on the effects of uncertainty. Thus marrying the tradition of CGE and control modeling can result in pricequantity models with explicit dynamics and careful t...

The computability of Nash equilibrium points of finite games is examined. When payoffs are computable there always exists an equilibrium in which all players use computable strategies. However, there is a computable sequence of games for which the equilibrium points do not constitute a computable sequence. For this reason, there can be no algorithm that, given arbitrary payoffs, computes a Nash...

A multiregion dynamic computable general equilibrium model is constructed to analyze effects of the Southern Common Market (MERCOSUR) on the member countries as well as third-party nonmember countries. The model is based on intertemporal optimization behaviors of consumers and firms with eight endogenously specified regions. By taking into account dynamic general equilibrium adjustments, we obs...

This paper deals with the modeling of the strategic allocation of greenhouse gases emission allowances in the EU-wide trading market that results from Kyoto agreement implementation. An M -matrix game is formulated where the players are countries or groups of countries that may have a strategic influence through their allocation of emission allowances and the payoffs are the welfare gains of th...

This paper examines the relative effect of changes in tax rates under three differing taxation schemes. Unlike previous modeling attempts, our analysis is performed at a relatively small scale, namely that of a city. We use a data intensive computable general equilibrium (CGE) model of a small city and attempt to analyze the effects on local residents’ real incomes, city revenues and economic g...