MONASH models are descended from Johansen's 1960 model of Norway. The first MONASH model was ORANI, used in Australia's tariff debate of the 1970s. Johansen's influence combined with institutional arrangements in their development gave MONASH models distinctive characteristics, facilitating a...

Validity is a key issue for consumers of computable general equilibrium (CGE) modeling services. What assurance can producers of CGE results give to consumers that a CGE analysis: (i) is computationally sound, (ii) uses accurate up-to-date data, (iii) adequately captures behavioral and...

The level of capital tax gains has high explanatory power regarding the question of what drives economic inequality. On this basis, the authors develop a simple, yet micro-founded portfolio selection model to explain the dynamics of wealth inequality given empirical tax series in the US. The...

So far, if one wished to analyse economic markets in all their complexity - i.e. by incorporating all information regarding firm and consumer behavior available from the fields of economics, marketing, consumer research, competitive strategy, and business analysis - she had to use formulas with...

Nowadays, many countries adopt an active agenda to mitigate the impact of greenhouse gas emissions by moving towards less polluting energy generation technologies. The environmental costs, directly or indirectly generated to achieve such a challenging objective, remain however largely...

Nowadays, many countries adopt an active agenda to mitigate the impact of greenhouse gas emissions by moving towards less polluting energy generation technologies. The environmental costs, directly or indirectly generated to achieve such a challenging objective, remain however largely...

This paper presents a new approach to solve dynamic decision models in economics. The proposed procedure, called Nonlinear Model Predictive Control (NMPC), relies on the iterative solution of optimal control problems on finite time horizons and is well established in engineering applications for...

The overlapping generations (OLG) model is an important framework for analyzing any type of question in which age cohorts are affected differently by exogenous shocks. However, as the dimensions and degree of heterogeneity in these models increase, the computational burden imposed by rational...

We propose a simulation-based procedure for evaluating approximation accuracy of numerical solutions of general equilibrium models with heterogeneous agents. We measure the approximation accuracy by the magnitude of the welfare loss suffered by agents from following sub-optimal policies. Our...

We propose a general simulation-based procedure for estimating quality of approximate policies in heterogeneous-agent equilibrium models, which allows to verify that such approximate solutions describe a near-rational equilibrium. Our procedure endows agents with superior knowledge of the future...