Ecosystems and economies are inextricably linked: ecosystem models and economic models are not linked. Consequently, using either type of model to design policies for preserving ecosystems or improving economic performance omits important information. Improved policies would follow from a model that links the systems and accounts for the mutual feedbacks by recognizing how key ecosystem variabl...

This introduces the symposium on dynamic general equilibrium. © 2009 Elsevier Inc. All rights reserved. JEL classification: E10; E20; E30

This paper shows how changes in generational accounts relate to the gen­ erational incidence of fiscal policy. To illustrate the relationship, it uses the Auerbach-KotlikofF Dynamic Life-Cycle Simulation Model to compare policyinduced changes in generational accounts with actual changes in generations' Utilities. The paper considers a wide ränge of policies in closed and small open economies as...

This essay describes and critically evaluates the important features of some approaches to the problem of incorporating money in general equilibrium models and ensuring a positive demand for money. The types of approaches considered are introducing money into the utility function, and modelling the transactions demand for money through the use of cash-in-advance constraints, real resource costs...

We say that a consumer is wary if she overlooks gains but not losses in remote sets of dates or states. We formulate this by requiring preferences to be upper but not lower Mackey semi-continuous and Bewley’s result on existence of Arrow-Debreu equilibrium whose prices are not necessarily countably additive holds. We relate wariness to some concepts studied in decision theory like lack of myopi...

The purpose of this paper is to explain the role of financial assets in allowing individual agents of an economy to make at time 0 some limited commitments into the future which, at some extent, redistribute their revenue among several time periods and different states of the world. It is done studying in different contexts the general equilibrium of a simple two-period exchange model, under we...

This paper illustrates the philosophy which forms the basis of calibration exercises in general equilibriummacroeconomic models and the details of the procedure, the advantages and the disadvantages of the approach, with particular reference to the issue of testing \false" economic models. We provide an overview of the most recent simulation-based approaches to the testing problem and compare t...