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De Economist

, Volume 139, Issue 2, pp 291–309 | Cite as

Excess demand in the keller model

  • O. J. C. Cornielje
  • C. Zeelenberg
Article

Summary

In this paper, the Keller (1980) framework for an applied general equilibrium model is adapted to allow for rationing of households. To accomplish this, the concept of virtual prices (Neary and Roberts, 1980) is used. The calibration of the linearized model to a benchmark-year data set must be accommodated to reveal the level of the virtual prices. The modified framework is used for a disaggregated 114-sector model of The Netherlands in 1981. The results show that the adaptation allowing for rationing is quite important for the model outcomes, although further adjustments of the model remain necessary for it to become a true short-term model.

Keywords

International Economic Public Finance Equilibrium Model General Equilibrium Excess Demand 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Kluwer Academic Publishers 1991

Authors and Affiliations

  • O. J. C. Cornielje
    • 1
  • C. Zeelenberg
    • 2
  1. 1.Faculty of Economic Sciences and EconometricFree University of AmsterdamHV AmsterdamThe Netherlands
  2. 2.Centraal Bureau voor de Statistiek (Netherlands Central Bureau of Statistics)AZ VoorburgThe Netherlands

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