I n the past decades, the effect of different tax amendments on various economic issues has been studied. The majority of these studies have avoided considering shadow economy as part of the calculation and analysis, and an issue, which has received little attention, is the relationship between green tax reforms and shadow economy, as for informal labor, which is well-connected to un...

This paper presents a general approximation method for characterizing timevarying equilibrium portfolios in a two-country dynamic general equilibrium model. The method can be easily adapted to most dynamic general equilibrium models, it applies to environments in which markets are complete or incomplete, and it can be used for models of any dimension. Moreover, the approximation provides simple...

In this paper we present an algorithm that deals with trade interactions within a multi-region model. In contrast to traditional approaches this algorithm is able to handle spillover externalities. We focus on technological spillovers which are due to capital trade. The algorithm of finding a paretooptimal solution in an intertemporal framework is embedded in a decomposed optimization process. ...

Computing equilibria in general equilibria models with incomplete asset (GEI) markets is technically difficult. The standard numerical methods for computing these equilibria are based on homotopy methods. Despite recent advances in computational economics, much more can be done to enlarge the catalog of techniques for computing GEI equilibria. This paper presents an interior point algorithm tha...

Tractable Latent State Filtering for Non-Linear DSGE Models Using a Second-Order Approximation* This paper develops a novel approach for estimating latent state variables of Dynamic Stochastic General Equilibrium (DSGE) models that are solved using a second-order accurate approximation. I apply the Kalman filter to a statespace representation of the second-order solution based on the ‘pruning’ ...

In this paper, a model of the nitrogen cycle in the soil is incorporated in a Computable General Equilibrium (CGE) model of the Tanzanian economy, thus establishing a two-way link between the environment and the economy. For a given level of natural soil productivity, profit-maximising farmers choose input levels — and hence production volumes — which in turn influence soil productivity in the ...

Oil price shocks are the major source of economic instability in oil exporting developing countries, including Iran. In this paper a Multi Sector Dynamic Stochastic General Equilibrium model, with emphasis on optimization of oil sector as a producing sector is designed. Furthermore, an optimizing import sector is introduced into the model by considering the price rigidity in imported goods as a...

a r t i c l e i n f o JEL classification: C68 D57 D58 Q41 Q43 Q48 Keywords: Energy efficiency Indirect rebound effects Economy-wide rebound effects Household energy consumption CGE models This paper investigates the economic impact of a 5% improvement in the UK household energy efficiency, focussing specifically on total energy rebound effects. The impact is measured through simulations using m...

We study a general equilibrium model with endogenous human capital formation in which ex ante identical groups may be treated asymmetrically in equilibrium. The interaction between an informational externality and general equilibrium effects creates incentives for groups to specialize. Discrimination may arise even if the corresponding model with a single group has a unique equilibrium. The dom...

We combine the newest concepts of non-cooperative coalition theory with a computable general equilibrium model close to the seminal RICE-model of Nordhaus and Yang (1996) to determine stable coalition structures in a global warming game. We consider three coalition games that allow for the formation of multiple coalitions. The coalition games represent different designs of climate treaty protoc...