Frontiers in Applied General Equilibrium Modeling
In Honor of Herbert Scarf

This 2005 volume brings together twelve papers honoring Herbert Scarf and discussing developments in applied general equilibrium.

Timothy J. Kehoe (Edited by), T. N. Srinivasan (Edited by), John Whalley (Edited by)

9780521153737, Cambridge University Press

Paperback, published 24 June 2010

450 pages
22.9 x 15.2 x 2.5 cm, 0.65 kg

Review of the hardback: 'The list of contributors to this book is impressive (including the two Nobel prize winners Arrow and Heckman) and the range of topics is broad … The title of the book covers its content very well: the book is clearly aimed at readers interested in the frontiers of applied research in the field of general equilibrium models.' De Economist

This 2005 volume brings together twelve papers by many of the most prominent applied general equilibrium modelers honoring Herbert Scarf, the father of equilibrium computation in economics. It deals with developments in applied general equilibrium, a field which has broadened greatly since the 1980s. The contributors discuss some traditional as well as some modern topics in the field, including non-convexities in economy-wide models, tax policy, developmental modeling and energy modeling. The book also covers a range of distinct approaches, conceptual issues and computational algorithms, such as calibration and areas of application such as macroeconomics of real business cycles and finance. An introductory chapter written by the editors maps out issues and scenarios for the future evolution of applied general equilibrium.

List of contributors
Acknowledgements
Introduction Timothy J. Kehoe, T. N. Srinivasan and John Whalley
Part I. General Equilibrium Theory: 1. Personal reflections on applied general equilibrium models Kenneth J. Arrow
2. Uniqueness of equilibrium in the multi-country Ricardo model Herbert Scarf and Charles A. Wilson
Part II. Computational Methods: 3. Solving dynamic stochastic competitive general equilibrium models Kenneth L. Judd
4. Mathematical programs with equilibrium constraints: automatic reformulation and solution via constrained optimization Michael C. Ferris, Steven P. Dirske and Alexander Meeraus
Part III. Macroeconomics and Finance: 5. Nonconvexities in quantitative general equilibrium studies of business cycles Edward C. Prescott
6. Lotteries for consumers versus lotteries for firms Lard Ljungqvist and Thomas J. Sargent
7. Default and aggregate fluctuations in storage economies Makoto Nakajima and José Víctor Ríos-Rull
8. New applications of general equilibrium to finance: default and collateral Aloisio Araujo and Mário Páscoa
Part IV. Public Finance, Development and Climate Change: 9. Efficient taxation of income Dale W. Jorgenson and Kun-Young Yun
10. Representative versus real households in the macroeconomic modeling of inequality François Bourguignon, Anne-Sophie Robilliard and Sherman Robinson
11. General equilibrium modeling for global climate change Alan S. Manne
Part V. General Equilibrium Restrictions and Estimation of Hedonic Models: 12. Simulation and estimation of hedonic models James Heckman, Rosa Matzkin and Lars Nesheim
Part VI. Policy Uses and Performance of AGE Models: 13. An evaluation of the performance of applied general equilibrium models of the impact of NAFTA Timothy J. Kehoe
14. Decompositional analysis using numerical equilibrium models: illustrations from trade literature Lisandro Abrego and John Whalley
15. The influence of computable general equilibrium models on policy Shantayanan Devarajan and Sherman Robinson
Index.

Subject Areas: Applied mathematics [PBW], Business mathematics & systems [KJQ], Business & management [KJ], Finance [KFF], Economic theory & philosophy [KCA]