1,721,178 research outputs found
Education, Labor Force Composition, and Growth A General Equilibrium Analysis
Full text linkWe propose, in this paper, a novel approach to modelling education and human capital
formation in a computable general equilibrium model. Rather than adopting microeconomic-
based assumptions of human capital formation, the method is based on an empirical
relationship between labor force composition and expenditure in education services. After
realizing a set of econometric estimates, we found some robust relationship between workers’
shares in the labor force and educational expenditure, in real terms and per capita. To assess
the implications of these findings, we simulate, in a conventional CGE model for Ethiopia, the
impact of an increase in public expenditure devoted to education. Our simulation results
highlight the existence of a multiplicative effect, such that the overall increase in the supply of
education services, in the final equilibrium state, is more than three times larger than the initial
demand push. This comes associated with a positive supply shock, entailing gains in
productivity, income, and welfare, as well as changes in the structure of the economy
Competition between Multiproduct Firms with Heterogeneous Costs
Full text linkThis paper draws upon Feenstra and Ma (2007, 2008), to develop a model of asymmetric competition between multiproduct firms. The model is used to analyze how cost asymmetry affects the equilibrium, with determination of quantity/price as well as product scope per firm. By treating the number of firms as a continuous variable, the model is extended to account for the endogenous determination of the number of firms in a long-run, monopolistically competitive equilibrium, with free entry by heterogeneous firms
Sectoral Differences in Labor Productivity Growth: Estimation and Modeling
Full text linkThis study provides some empirical evidence and quantification of differences in labor
productivity among industries and countries. Using a recently available data base of value
added per worker, country and time fixed effects are estimated first for various industries.
Results are subsequently elaborated, to identify some time trends and sectoral profiles by
country, which are in turn employed in a cluster analysis, summarizing some salient
characteristics of industrial labor productivity in different economies. The empirical exercise
is motivated by the possible employment of its findings in the construction of long-run
economic growth scenarios, by means of Computable General Equilibrium (CGE) models. It
is found that: (a) Manufacturing is normally the fastest growing sector and its performance is
strongly correlated with the aggregate productivity growth; (b) differences in the rates of
agricultural productivity gains are relatively minor; (c) slow-growing countries are
characterized by slow-growing Services
General Equilibrium Effects of Investments in Education and Changes in the Labor Force Composition
Full text linkIn this paper, a novel approach to modelling education and human capital formation in a computable general equilibrium model is proposed. Rather than adopting microeconomic-based assumptions of human capital formation, the method is based on an empirical relationship between labor force composition and expenditure on education services. It is found some robust correlation between workers’ shares in the labor force and educational expenditure, in real terms and per capita. To assess the implications of these findings, the impact of an increase in public expenditure devoted to education is simulated in a conventional CGE model for Ethiopia. The simulation results highlight the existence of a multiplicative effect, such that the overall increase in the supply of education services, in the final equilibrium state, is more than three times larger than the initial demand push. This comes associated with a positive supply shock, entailing gains in productivity, income, and welfare, as well as changes in the structure of the economy
Understanding the Global Dynamics of Sectoral Labor Productivity
Full text linkAbstract This study provides some empirical evidence and quantification of differences in labor productivity among industries and countries. Using a recently available data base of value added per worker, country and time fixed effects are estimated first for various industries. Results are subsequently elaborated, to identify some time trends and sectoral profiles by country, which are in turn employed in a cluster analysis, summarizing some salient characteristics of industrial labor productivity in different economies
A modelling framework for assessing the economic impact of climate change in the Caribbean
Full text linkIncludes bibliography.The eclac-Climate Impacts Assessment Model (CIAM) is a modelling platform that
has been created to assess the economic consequences of climate change in the
Caribbean. The model can be freely accessed, downloaded and even modified.
The version available is a full-fledged model which can readily be used to conduct
simulation exercises. This paper provides a general description of the model and
an illustrative simulation exercise. Our results from this exercise highlight the fact
that the Caribbean is a highly vulnerable region where climate change is expected
to generate sizeable and negative economic consequences
The Adjustment of Interregional Input-Output Coefficients under Heterogeneous Price Sensitivity: a Linearized Model
No full textIn this paper, an interregional general equilibrium model is presented which combines a linear structure with factor substitution under heterogeneous price sensitivity among industries. The model is an extension of the MRVIO model proposed by Liew and Liew (1984a, b) and is compared with others in the field of interregional computable general equilibrium models. A simple numerical exercise is carried out to assess the impact of alternative hypotheses (about elasticities of substitution) on the model's performance. © 1991 Springer-Verlag
CGE Models of the Economic Impacts of Climate Change with a Case Study of the Caribbean
No full textComputable General Equilibrium (CGE) models have become an integral part of\ud
numerical simulation models for the assessment of climate change impacts and\ud
policies. This chapter discusses the structure and the simulation methodology of\ud
CGE models aimed at assessing the economic impacts of climate change, but it\ud
does not consider applications of CGE modeling related to the implementation\ud
and effects of climate policies, such as green taxation. The modifications\ud
needed in the standard CGE framework to gauge the economic implications\ud
of climate change are discussed first. Subsequently, a taxonomy of different\ud
models found in the literature, in terms of their salient characteristics such as\ud
dynamics, expectations, integration with other models, etc., is proposed. By way\ud
of illustration, a specific simulation exercise, aimed at assessing the economic\ud
impacts of climate change on a set of Caribbean states, is presented
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