Search results

Standard macro theories have the same analytical structure as their micro counterparts. Where micro theories work with equilibrium between supply and demand for particular products, macro theories work with equilibrium applied to aggregates of products. This common approach treats the micro–macro relationship as scalable, with macro variables being aggregations over micro variables. In contrast, we pursue a systems-theoretic approach to the micro–macro relationship. This relationship is not scalable and rather entails a disjunction between micro- and macro-levels of theory. While micro phenomena are still susceptible to choice-theoretic analysis, macro phenomena are products of ecological interaction and so entail emergent phenomena. Our alternative approach treats macro theory as a form of systems theory where the behavior of the system has properties that are not reducible to properties of the individual elements within that system. Besides sketching this alternative approach, we examine some of the different insights this approach offers into such topics as unemployment and stabilization.

This paper's purpose is to investigate the claim that capital taxes imposed by a subnational government reduce the economic competitiveness of the geographic area in which these taxes are imposed.

A two‐region, four‐good, three‐factor computational general equilibrium model of the USA is constructed. Simulations are performed to represent US state governments replacing wage taxes with capital taxes.

Household utilities rose when wage taxes were replaced by capital taxes, contradicting the conventional wisdom that capital taxes are harmful to a region's residents.

As with all computational economic models, there are simplifications in this paper's model that abstract from reality and may limit the applicability of model results to the real world.

Subnational governments need not shy away from capital taxes when funding government programs.

This paper contributes to the investigation of subnational tax incidence.

During the Paris Convention, Korean Government made commitment to curb carbon emission by 37 percent by the year of 2030. Since then there has been constant debate, both in media and academia, as to whether attempts to reduce carbon emission would spell the concomitant economic slowdown. The purpose of this paper is to build a Computable General Equilibrium (CGE) model to see the effects of emission decrease on Korea economy.

To answer the above question, we build a comprehensive framework to gauge the economic impact of Paris Convention through the lens of Computable General Equilibrium (CGE) model using Armington and Melitz model.

Contrary to conventional wisdom, Korea’s economic performance in terms of welfare remains robust when the carbon emission is reduced. Broadly speaking, Korea’s welfare does not contract significantly in part due to expansion at the export market. For instance, the energy intensive industry (EIT) is affected most directly from the Paris Convention commitment and yet it experiences growth in export. On the contrary, the authors find that the general economic impact on Korea’s output is negative. The additional experiment using Melitz model shows that as the carbon reduction is enforced, both the number and the average productivity of the exporting firms increase in the EIT sector, which the authors refer in the paper as the “Melitz Effect.”

This paper shows that what can be occurred in Korean industries by emission decrease commitment.

One byproduct from restricting carbon emission is the surge in the electricity price. This is due to the fact that industries have to shift away from traditional fuels such as oil to electricity for energy. Therefore the authors propose that industrial policies aimed at balancing electricity price should accompany the plan to reduce carbon emission.

For Korean economy, the effects of emission reduction is researched using Armington and Melitz model at the same time. Especially, this is the first research case using the Melitz model in this Korean topic.

The three volumes before us comprise the second title in the “Elgar Reference Collection” of Critical Ideas in Economics, a new series which, we learn from the book cover, aims to provide “an essential reference source for students, researchers and lecturers in economics.” Each volume in the series will bring together a collection of previously-published articles and book-chapters which “focuses on [a] concept widely used in economics,” and will thereby “improve access to important areas of literature which will not be available in the archives of many of the newer libraries.” No one can deny that Professor Walker’s topic is ideally suited to this stated intent; is there a concept more “widely used in economics” than that of equilibrium? A collection of previously-published items cannot, of course, be appraised in terms of the originality of its content. Such a work offers a different sort of contribution. In addition to the publisher’s stated aim of an improved access to those key articles which, either because of their age or the location of their publication, are not widely available, a work such as this can perform a function not unlike that which Weintraub (1991, pp. 129–130) ascribes to the survey article. The act of selection (and, hence, of exclusion) serves to delineate the field for the non-specialist, and the ordering of the items in the collection can reveal instructive lines of intellectual development – a “filiation of scientific ideas” to adopt Schumpeter’s (1954, p. 6) felicitous phrase – that otherwise might be obscured.

Since it is difficult for researchers to access data for the North Korean economy, they typically choose a proxy economy for estimating the economic impact of the unification of the two Koreas using a computational general equilibrium (CGE). This paper aims to identify the best proxy economy for North Korea out of the 140 economies (countries) in the Global Trade Analysis Project (GTAP) database version 9.1, which was published in mid-2015. (Ed- if your study aim is ‘to identify the best proxy economy for North Korea’, then you must state your study finding here in the abstract, and also in the conclusion, i.e., Romania) This paper evaluates the input-output (IO) tables for the North Korean economy in existing studies. Comparing the coefficients for North Korea in existing studies with those of the countries selected for this paper, substantial differences were found, especially for the services sector. This casts some doubt on the IO tables in the existing studies on the North Korean economy.

The purpose of this study is to investigate the relationship between the flow of funds and growth variables for Latin America during the period of 1973–2000. To do so, we present a four equation econometric model that represents the traditional Monetarist and Keynesian perspectives. We also examine the hypothesis that the region can grow through gains from trade, through investigating trade as a source of growth from both computational general equilibrium (CGE) and Cournot-Nash equilibrium standpoints. Analyzing several scenarios, we determine that liberalization and reduced protectionism are superior strategies for Latin America.