Abstract
This paper deals with recent developments of computable general equilibrium (CGE) models along two important dimensions: (1) the incorporation of intertemporal aspects of decision-making, and (2) the treatment of international capital flows. The two dimensions are closely related, since intertemporal choices — in particular saving and investment decisions — directly influence the flows of capital between economies that are integrated in world financial markets.
This paper was prepared for the Symposium on Applied General Equilibrium Models for Open Economies, Noordwijk, The Netherlands, December 3–5, 1989. We are very grateful to Symposium participants for helpful comments. The views expressed in this paper are strictly personal and do not necessarily reflect the official position of the International Monetary Fund.
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Bovenberg, A.L., Goulder, L.H. (1991). Introducing Intertemporal and Open Economy Features in Applied General Equilibrium Models. In: Don, H., van de Klundert, T., van Sinderen, J. (eds) Applied General Equilibrium Modelling. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-7908-7_4
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