A general equilibrium framework is developed for analyzing the role of immobile factors of production which produce inputs for other sectors.

This paper reports on a sixteen-sector five asset general equilibrium tax model of the UK economy benchmarked to the 1995 data set received from the Inland Revenue. We use this model to access the impacts o capital income taxes, labour income taxes, indirect taxes, and tariffs.

The creation and ongoing management of a large economic model can be greatly simplified if the model is managed in separate smaller pieces defined, e.g. by region or commodity. For this purpose, we define an extension of Dantzig–Wolfe decomposition for the variational inequality (VI) problem,...