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Policies affecting resource allocation across tradable sectors and those affecting the incentives to produce tradable activities are key determinants of macroeconomic balance and growth. Computable general equilibrium models have made significant contributions to both types of policies. With advancements in computing power and software, these models have become easy to implement and are now widespread. The question then is when and how to formulate them to avoid the 'black box' syndrome. This book seeks to address these issues through carefully selected essays that analyse how to model general equilibrium linkages in a single economy, across developing and developed economies, and across both micro and macro policies. Micro policies examined include tariffs quotas and VERs, the choice of taxes to maximize government revenue, migration and remittances, and the political economy of tariff setting. Applications on macro policies cover capital inflows, real exchange rate determination, and the modeling of the effects of adjustment policies on income distribution. The book provides insights on the development of a family of models for diverse policy choices, focusing on the ways to model the following: links between tradable and non-tradable activities, labor markets, and portfolio choices given limited capital mobility. Selected essays are all inspired by specific policy problems, including the adaptation to external shocks (i.e. oil), consequences of capital inflows, determinants of migration and associated remittances, the productivity of foreign aid, and rent-seeking activities under trade regimes with non-price trade restrictions. Examples in this book lay out the theoretical foundations, alongside a variety of applications, to help formulate coherent and transparent models for policy analysis. Archetype economies are extensively used to show how differences in economic structure influence the effects of policies. Graduate students and policy analysts interested in modeling will find this a useful compendium of studies.

Equilibrium (Economics) --- Computable general equilibrium models --- Developing countries --- Economic policy.

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This paper develops a structural macroeconometric model of the world economy, disaggregated into forty national economies. This panel dynamic stochastic general equilibrium model features a range of nominal and real rigidities, extensive macrofinancial linkages, and diverse spillover transmission channels. A variety of monetary policy analysis, fiscal policy analysis, macroprudential policy analysis, spillover analysis, and forecasting applications of the estimated model are demonstrated. These include quantifying the monetary, fiscal and macroprudential transmission mechanisms, accounting for business cycle fluctuations, and generating relatively accurate forecasts of inflation and output growth.

Macroeconomics --- Monetary policy --- Bank loans --- Bank credit --- Loans --- Econometric models. --- Banks and Banking --- Money and Monetary Policy --- Inflation --- Econometrics --- Bayesian Analysis: General --- Multiple or Simultaneous Equation Models: Models with Panel Data --- Model Construction and Estimation --- Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) --- Financial Markets and the Macroeconomy --- Monetary Policy --- Fiscal Policy --- Open Economy Macroeconomics --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Financial Institutions and Services: Government Policy and Regulation --- Interest Rates: Determination, Term Structure, and Effects --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Macroeconomics: Consumption --- Saving --- Wealth --- Price Level --- Deflation --- Computable and Other Applied General Equilibrium Models --- Banking --- Finance --- Monetary economics --- Econometrics & economic statistics --- Market interest rates --- Central bank policy rate --- Consumption --- Financial services --- National accounts --- Prices --- Dynamic stochastic general equilibrium models --- Econometric analysis --- Interest rates --- Banks and banking --- Credit --- Economics --- Econometric models --- United Kingdom

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We develop a micro-founded general equilibrium model with heterogeneous agents to identify pertinent constraints to financial inclusion. We evaluate quantitatively the policy impacts of relaxing each of these constraints separately, and in combination, on GDP and inequality. We focus on three dimensions of financial inclusion: access (determined by the size of participation costs), depth (determined by the size of collateral constraints resulting from limited commitment), and intermediation efficiency (determined by the size of interest rate spreads and default possibilities due to costly monitoring). We take the model to a firm-level data from the World Bank Enterprise Survey for six countries at varying degrees of economic development—three low-income countries (Uganda, Kenya, Mozambique), and three emerging market countries (Malaysia, the Philippines, and Egypt). The results suggest that alleviating different financial frictions have a differential impact across countries, with country-specific characteristics playing a central role in determining the linkages and tradeoffs between inclusion, GDP, inequality, and the distribution of gains and losses.

Financial services industry --- Income distribution --- Gross domestic product --- Computable general equilibrium models. --- Distribution of income --- Income inequality --- Inequality of income --- Distribution (Economic theory) --- Disposable income --- Services, Financial --- Service industries --- CGE models --- Equilibrium models, Computable general --- General equilibrium models, Computable --- Econometric models --- Domestic product, Gross --- GDP --- Gross national product --- Econometric models. --- Developing countries --- Emerging nations --- Fourth World --- Global South --- LDC's --- Least developed countries --- Less developed countries --- Newly industrialized countries --- Newly industrializing countries --- NICs (Newly industrialized countries) --- Third World --- Underdeveloped areas --- Underdeveloped countries --- Economic policy --- Computable general equilibrium models --- E-books --- Finance: General --- Labor --- Macroeconomics --- Money and Monetary Policy --- Industries: Financial Services --- Macroeconomics: Production --- Financial Markets and the Macroeconomy --- Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: Other --- Macroeconomic Analyses of Economic Development --- Economic Development: Financial Markets --- Saving and Capital Investment --- Corporate Finance and Governance --- Comparative Studies of Countries --- Labor Demand --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Aggregate Factor Income Distribution --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Labour --- income economics --- Finance --- Monetary economics --- Self-employment --- Credit --- Financial inclusion --- Collateral --- Money --- Financial markets --- National accounts --- Financial institutions --- Self-employed --- Loans --- Philippines

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This paper uses two of the IMF's structural macroeconomic models to estimate the potential global impact of the boom in unconventional oil and natural gas in the United States. The results suggest that the impact on the level of U.S. real GDP over roughly the next decade could be significant, but modest, ranging between 1 and 1½ percent. Further, while the impact on the U.S. energy trade balance will be large, most results suggest that its impact on the overall U.S. current account will be negligible. The impact outside of the United States will be modestly positive on average, but most countries dependent on energy exports will be affected adversely.

Economic development -- United States. --- Fiscal policy -- United States. --- Gas industry -- United States. --- Petroleum industry and trade -- United States. --- Mechanical Engineering --- Engineering & Applied Sciences --- Metallurgy & Mineralogy --- Exports and Imports --- Macroeconomics --- Public Finance --- Industries: Energy --- Investments: Energy --- Computable and Other Applied General Equilibrium Models --- Forecasting and Simulation: Models and Applications --- Prices, Business Fluctuations, and Cycles: Forecasting and Simulation --- Open Economy Macroeconomics --- Macroeconomic Aspects of International Trade and Finance: Forecasting and Simulation --- Energy and the Macroeconomy --- Energy: Demand and Supply --- Prices --- International Investment --- Long-term Capital Movements --- Hydrocarbon Resources --- Current Account Adjustment --- Short-term Capital Movements --- Energy: General --- Energy industries & utilities --- International economics --- Petroleum, oil & gas industries --- Investment & securities --- Energy pricing --- Energy prices --- Foreign assets --- Natural gas sector --- Current account --- External position --- Economic sectors --- Balance of payments --- Oil --- Commodities --- Expenditures, Public --- Investments, Foreign --- Gas industry --- Petroleum industry and trade --- United States

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Subsidies and cross-subsidies in the energy sector are common throughout Eastern Europe and Central Asia. In Belarus, revenues from an industrial tariff on electricity are used to cross-subsidize heating for households. Input-output (IO) data and a household consumption survey are used to analyze the distributional impacts of this cross-subsidization. This paper illustrates cost shares and electricity-intensity of different sectors and consumption categories and uses the IO data to obtain first-order estimates of the distributional incidence of policy reform. The paper then analyzes distributional impacts of subsidy reform with a Computable General Equilibrium model. Although poorer households benefit from reduced heating costs, the increase in prices of other consumer goods due to higher electricity prices more than offsets the benefits they receive from the subsidies. The analysis finds that the current cross-subsidies are regressive, and policy reform would be highly progressive.

Agriculture --- Approach --- Banking --- Benchmark --- Benchmark data --- Capital --- Capital returns --- Commodities --- Commodity --- Communication --- Competition --- Consumer demand --- Consumer good --- Consumer goods --- Consumer groups --- Consumer prices --- Consumers --- Consumption --- Cost increase --- Cost of electricity --- Cost of funds --- Costs --- Customer --- Customers --- Demand --- Developing economy --- Development policy --- Distribution --- District heating --- Domestic market --- Domestic price --- Economic cooperation --- Economic development --- Economic statistics --- Economic systems --- Economic theory & research --- Economics literature --- Elasticity --- Elasticity of substitution --- Electricity --- Electricity prices --- Emerging markets --- Energy --- Energy price --- Energy prices --- Energy production and transportation --- Equilibrium --- Equilibrium analysis --- Equilibrium price --- Equilibrium prices --- Exchange --- Expenditure --- Expenditures --- Export market --- Exports --- Externalities --- Factors of production --- Foreign exchange --- Fossil --- Fossil fuel --- Fuel --- Fuels --- Functional forms --- General equilibrium analysis --- Goods --- Heat --- Household analysis --- Income --- Income group --- Income groups --- Income levels --- Incomes --- Inputs --- Intermediate goods --- International markets --- Inventory --- Macroeconomics and economic growth --- Marginal cost --- Market --- Markets --- Markets & market access --- Multipliers --- Natural resources --- Oil --- Oil products --- Optimization --- Output --- Outputs --- Payments --- Perfect competition --- Price --- Price change --- Price changes --- Price index --- Price levels --- Prices --- Pricing --- Pricing policy --- Pricing scheme --- Private sector development --- Product --- Production --- Production costs --- Production function --- Production functions --- Production increases --- Production of coke --- Production structure --- Products --- Rate of return --- Real estate --- Rent --- Residential energy --- Revenue --- Savings --- Share --- Shares --- Subsidies --- Subsidization --- Subsidy --- Substitute --- Substitutes --- Substitution --- Supply --- Supply costs --- Tariff --- Tax --- Tax rate --- Tax rates --- Taxes --- Theory --- Total output --- Trade --- Transition economies --- Transport --- Transport economics policy and planning --- Trends --- Utility --- Utility functions --- Value --- Value added --- Variables --- Wealth --- Welfare