This paper proposes a new decomposition of welfare effects simulated by Computable General Equilibrium (CGE) models. Rather than relying on first order approximations, our approach is based on Taylor series approximations of CGE specifications and thus is path independent. This decomposition is...

This paper formulates a specific factor model of trade with skilled and unskilled workers as the specific and capital as the mobile factors. Production of goods is subject to intermediation and corruption. We then allow for international capital mobility and show that corruption as an activity...

In an equilibrium trade model, we prove that not only the diversity effect but also the kurtosis effect will affect the pattern of comparative advantage. Furthermore, we find that, against the conventional results, if the kurtosis effect dominates the diversity effect then a country with more...

This paper proposes a new decomposition of welfare effects simulated by Computable General Equilibrium (CGE) models. Rather than relying on first order approximations, our approach is based on Taylor series approximations of CGE specifications and thus is path independent. This decomposition is...

In this paper we analyze, from the Negishi approach the concepts of structurally stable and structurally unstable economies on Banach's spaces. With this purpose we formalize the intuitive concept of similar economies. We show that in certain cases similar (or neighboring) economies can show no...

It is well-known that in the static Arrow-Debreu economy with complete markets, extrinsic uncertainty cannot matter. This paper re-examines this result when agents preferences exhibit aversion to Knightian uncertainty. We then show that extrinsic uncertainty still cannot matter.

In a static Lucas's tree economy, we explore the effect of two types of background risk, uninsurable risk for labor income and miscalibrated risk for payoff distribution of risky asset, on the equilibrium price of the risky asset. Then we analyze the data of U.S. stock market and GDP growth...

This paper carries out a detailed survey of CGE and Microsimulation models used in the evaluation of issues related directly or indirectly to incomes distribution. Different model structures are discussed which have been employed for country-specific, multi-country and region-specific studies....

When individual preferences are strictly monotone, the continuity of the excess demand functions that is usually assumed to show the existence of a Walrasian equilibrium does not hold for price vectors in which at least one component is equal to zero. In this paper we provide a simple proof of...

This paper studies the way market power operates under symmetric oligopoly equilibrium. Stressing the role of preferences and focusing on price manipulation, four results are obtained about asymptotic identifications (for degenerate preferences and large economies) and about welfare configurations.