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The ease with which workers can move between sectors has a strong impact on the effects on labor markets of shocks such as changes in world prices or migration flows. This paper introduces an approach to labor mobility with frictions under which worker capabilities (their efficiencies in different sectors) depend on their sector affiliation. If workers in sector a move to sector a', their efficiency shortfall due to a capability misfit compared to what is needed in a' (and possessed by workers already in a') is measured by a proximity parameter, 0 ? proxa,a' ? 1. If proxa, a' < 1, the efficient quantity reaching a' is below the physical quantity. In this setting, profit-maximizing producers are willing to pay the same wage per efficiency unit irrespective of worker origin and thus pay less efficient workers a lower wage per physical unit. This approach to labor mobility is tested in a static CGE model that is applied to an illustrative sub-Saharan African dataset with sector proximities defined using the approach of the product-space literature. Simulations of positive export price shocks show that, the higher the proximities, the stronger the labor reallocation and the welfare gains.
Computable General Equilibrium Models --- Development Planning And Policy --- Factor Mobility --- Labor Mobility --- Wage Differentials
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This paper presents results from four simulations of the impact of potential tax reforms in Pakistan on poverty, shared prosperity, and inequality. The simulations are carried out in the context of a dynamic computational general equilibrium model that incorporates endogenous tax evasion. The simulations link the computational general equilibrium model to household survey data that are incorporated in a micro simulation model. The combined models suggest that equal yield increases in sales and corporate tax rates differ mildly in their impacts on consumption and poverty. Endogenously modeled tax evasion plays an important role in the results.
CGE Models --- Computable General Equilibrium Models --- Distributional Effects --- Tax Incidence --- Tax Reform --- Taxation
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This book presents an evaluation of the impacts of megathrust earthquakes and tsunamis on regional economies and subsequent reconstruction, as well as regional revitalization by the spatial economic model and dynamic macro and regional computable general equilibrium (CGE) models. The cases examined are the Great East Japan Earthquake and the Indian Ocean Tsunami. The study constructs three models of these megathrust earthquakes and the associated tsunami. In the first model, the regional CGE model is proposed with a database comprising the two-regional social accounting matrix for 2005 between the region comprising four disaster-affected prefectures of Japan and the non-disaster region. For the recursive dynamic regional CGE model, the model that expanded and improved the dynamic two-regional CGE model to reflect the incomplete employment conditions and the aging society is used to analyze the impacts of an earthquake and the construction of industrial clusters. In the second model, the interregional input–output model is proposed in order to analyze the impacts of the earthquake and rapid population decline and construction of a biogas electricity power plant. In the third model, a new economic geography (NEG) model is proposed, consisting of the 47 prefectures of Japan in order to investigate the impacts of the Great East Japan and Nankai megathrust earthquakes and the associated tsunami and to consider how they change the regional economies of Japan. Using these three models, the impacts of megathrust earthquakes and tsunamis on regional economies and reconstruction and on regional revitalization are evaluated.
Computable general equilibrium models. --- CGE models --- Equilibrium models, Computable general --- General equilibrium models, Computable --- Public administration. --- Population. --- Asia --- Regional economics. --- Spatial economics. --- Economics. --- Regional/Spatial Science. --- Asian Economics. --- Public Administration. --- Population Economics. --- Economic conditions. --- Econometric models --- Asia-Economic conditions. --- Administration, Public --- Delivery of government services --- Government services, Delivery of --- Public management --- Public sector management --- Political science --- Administrative law --- Decentralization in government --- Local government --- Public officers --- Economics --- Regional planning --- Regionalism --- Space in economics --- Human population --- Human populations --- Population growth --- Populations, Human --- Human ecology --- Sociology --- Demography --- Malthusianism --- Asia—Economic conditions. --- Spatial economics --- Regional economics
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