4. Uncertainty in Structural and Institutional Parameters and the Cost of Policy Mistakes: A Computable General Equilibrium Evaluation

2016 ◽  
pp. 57-82
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
The Cost

Endogenous Growth and R&D Infrastructure

2017 ◽  
pp. 164-186
Author(s):  
Koushik Das
Keyword(s):  
General Equilibrium ◽  
Endogenous Growth ◽  
Open Economy ◽  
Computable General Equilibrium ◽  
Capital Accumulation ◽  
Public Expenditure ◽  
Moderate Increase ◽  
Fiscal Deficit ◽  
The Cost ◽  
Direct Tax

This chapter attempts to capture the effects of R&D led endogenous growth in an open economy Computable General Equilibrium (CGE) framework which is based on R&D based social accounting Matrix (SAM). Effects of physical and R&D led knowledge capital accumulation have been studied through simulation experiments. It is reported that increase of public expenditure in R&D promotes growth and expands sectoral outputs at the cost of fiscal deficit. Moderate increase of direct tax in the form of education can finance public expenditure on R&D without much reduction of real domestic income of the households.

scholarly journals The deadweight cost of war: An illustrative CGE

2011 ◽  
Vol 6 (2) ◽  
Author(s):  
John Gilbert ◽  
Krit Linananda ◽  
Tanigawa Takahiko ◽  
Edward Tower ◽  
Alongkorn Tuncharoenlarp
Keyword(s):  
General Equilibrium ◽  
Interest Rates ◽  
Equilibrium Model ◽  
Computable General Equilibrium ◽  
Full Employment ◽  
Computable General Equilibrium Model ◽  
General Equilibrium Model ◽  
Small Scale ◽  
Cost Of War ◽  
The Cost

War is costly both because of the resources used up and because of the inefficiency introduced by the higher taxes necessary to finance them. War has been justified by its ability to help an economy achieve full employment. Robert Barro argues that war increases employment because folks work harder to smooth consumption and take advantage of the higher interest rates caused by the scarcity that accompanies war. In his view, it does not reflect putting previously wasted resources to work. This article describes the simulations of a small-scale intertemporal computable general equilibrium model. It illustrates that the cost of war depends on how it is financed, and that the increase in employment that it generates may be explained by the logic that Barro offers. Our model can be loaded into GAMS, a program which is available free of charge online, so readers can themselves simulate variations of the model.

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