Modeling Intertemporal General Equilibrium: An Application to Austrian Commercial Policy
Journal
Empirical Economics
ISSN
0377-7332
Type
journal article
Date Issued
1994-02-01
Author(s)
Abstract
We present a multi-sector CGE model featuring forward looking investment and savings behavior within an intertemporal optimization framework. Thus, the model captures several of the intertemporal effects of commercial policy that have been stressed by recent literature on current account adjustment. We argue that pursuing a simulation approach in addressing these issues is warranted by certain limitations and ambiguities of the analytical literature. In addition to presenting the details of the model structure, the paper addresses calibration issues relating to intertemporal parameters. The model is calibrated to a microconsistent data set for the Austrian economy. Finally, the paper features an application of the model to a simple tariff liberalization scenario.
Language
English
Keywords
Behavior
commercial policy
investments
saving & investment
simulation methods.
HSG Classification
not classified
Refereed
No
Publisher
Springer Dordrecht
Publisher place
Dordrecht /NL
Volume
19
Number
1
Start page
131
End page
164
Pages
34
Subject(s)
Eprints ID
21982