We develop a CGE model that approximates a macroeconomic forecast of the German economy in the medium run. The "…tted" model is used to derive wage and employment changes for di¤erent skill types and industries. These simulated changes are then handed over to a tax-bene…t model that determines the net income changes at the household level. We …nd negative wage e¤ects which are quite proportiona...

As the chances of a successful conclusion to the Doha Round of trade liberalization under the WTO become increasingly problematic, so the pace of negotiating local free trade agreements (FTAs) is increasing. According to the WTO report, countries in the Asia-Pacific region are “consolidating their drive towards regionalism at an accelerated pace”. After the trade agreements between China an...

Macroeconomic policy makers are typically concerned with several indicators of economic performance. We thus propose to tackle the design of macroeconomic policy using Multicriteria Decision Making (MCDM) techniques. More specifically, we employ Multiobjective Programming (MP) to seek so-called efficient policies. The MP approach is combined with a computable general equilibrium (CGE) model. We...

This paper analyses the fiscal pressure from population ageing using an intertemporal CGE model, applied to Australia, and compares the results with those of a recent governmentcommissioned study. The latter study uses an alternative modelling approach based on extrapolation rather than optimizing behaviour of consumers and firms. The deadweight losses from the fiscal pressure caused by populat...

Numerical economic models of energy fall into two general categories: models analyzing within energy sector issues and models examining the interaction between the energy sector and the rest of the economy. The first category are mostly partial equilibrium models with a very detailed and disaggregated representation of the energy sector. Although very useful for sector planning purposes this cl...

This paper reviews Bolivia’s economic and social development over the period 198599, and investigates the country’s future prospects for pro-poor growth using a Computable General Equilibrium (CGE) model. Model simulations show that under optimistic assumptions the growth and poverty goals envisaged in the Bolivian poverty reduction strategy may be achieved, but that performance will fall short...

The paper developes a uni...ed general equilibrium model that merges three basic building blocks of intertemporal macroeconomics: savings with overlapping generations, capital accumulation and search unemployment. Long-run analytical results for the small open economy show that the e¤ects of integration on unemployment depend on the nature of wage taxation and unemployment compensation. As a se...