Dynamic General Equilibrium Modeling: Computational.
This thesis consists of three chapters studying dynamic economies in general equilibrium. The first chapter considers an economy in business cycles with potentially imperfect financial markets. The second chapter investigates an economy in its balanced growth path with heterogeneous firms. The third chapter analyzes dynamic competitions that these firms are potentially engaged in. The first.
Whilst sharing many features with CGE models, Dynamic Stochastic General Equilibrium models (DSGE) aim to capture business cycle fluctuations and thus have a stronger focus on the shorter-term impacts. Unlike many CGE models, these types of models are less disaggregated and allow for random variation to account for uncertainty. Which data feed into the CGE model? The dataset which forms the.
Dynamic General Equilibrium Modeling presents various methods in order to compute the dynamics of general equilibrium models. In Part I, the representative-agent stochastic growth model is solved with the help of value function iteration, linear and linear quadratic approximation methods, parameterized expectations, and projection methods.
This thesis uses a general equilibrium modeling approach to examine the dynamic effects of these policy challenges on the Trinidad and Tobago economy. In the first case, this study examines the financial and real effects of excess reserves in a New Keynesian Dynamic Stochastic General Equilibrium model with monopoly banking, credit market.
General equilibrium theory has constituted an indispensible building block of neoclassical economics. This paper looks at the various components of the general equilibrium model and seeks to determine the conditions under which its assumptions hold. It also looks at the role the theory plays in economic analysis. The paper goes further to talk about the foundations on which the theory is built.
Motivated by the highly-unionized public sectors, the high public shares in total employment, and the public sector wage premia observed in most post-WWII European economies, Chapter 1 examines the role of public sector unions in a general equilibrium framework. A strong union presence in a large non-market sector is shown to be relevant for both business cycle fluctuations and for the welfare.
In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium.General equilibrium theory contrasts to the theory of partial equilibrium, which only analyzes single markets.