Offers a technically rigorous but readable introduction to modern trade theory
Sheds new light on the welfare effects of trade liberalization under different specifications of market structures
Provides a blueprint for numerical implementation of modern trade theory in a CGE context
Part of the book series: Advances in Applied General Equilibrium Modeling (AAGEM)
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Table of contents (8 chapters)
About this book
For computable general equilibrium (CGE) modelers, the book shows how Melitz-style CGE models can be calibrated, solved and interpreted. A major practical contribution of the book is to show how large-scale Armington models such as GTAP can be converted to Melitz by the addition of a small number of equations and minimal alteration of the original Armington model.
The book describes computational experience in solving Melitz CGE models using GEMPACK software. This experience will be of interest to researchers currently attempting to solve Melitz-based CGE models. Almost all previous Melitz studies have used GAMS software. Authors of these studies have reported computational difficulties. These difficulties did not occur in this book’s GEMPACK-based computations.
The book concludes that: (a) CGE modelers can embrace Melitz while retaining their Armington-based models as powerful interpretive devices; and (b) via GEMPACK, large-scale CGE models incorporating Melitz specifications can be solved with no more difficulty than similar-dimensioned Armington models.
- Armington CGE Model
- Krugman CGE Model
- Melitz CGE Model
- Computable General Equilibrium
- Modern Trade Theory
Authors and Affiliations
Centre of Policy Studies, Victoria University, Melbourne, Australia
Peter B. Dixon, Michael Jerie, Maureen T. Rimmer
About the authors
Michael Jerie is Senior Research Fellow at the Centre of Policy Studies, Victoria University, Australia. His main research area is developing GEMPACK (General Equilibrium Modelling PACKage), a suite of programs for formulating, solving and interrogating economic models. He is the co-author of numerous GEMPACK documents which are used world-wide by CGE modelers.
Maureen T. Rimmer is Professor at the Centre of Policy Studies, Victoria University, Australia. Her main area of expertise is model development and application. With Peter Dixon she is the co-developer of the MONASH model of the Australian economy. In the last fifteen years she has been a key contributor in the development, application, and documentation of USAGE. She has made major contributions in applications of the model to key policy areas such as the replacement of imported crude oil with domestically produced biofuels, legalization of unauthorized immigrants, and the effects of terrorism events on the U.S. economy.
Book Title: Trade Theory in Computable General Equilibrium Models
Book Subtitle: Armington, Krugman and Melitz
Authors: Peter B. Dixon, Michael Jerie, Maureen T. Rimmer
Series Title: Advances in Applied General Equilibrium Modeling
Publisher: Springer Singapore
Copyright Information: Springer Nature Singapore Pte Ltd. 2018
Hardcover ISBN: 978-981-10-8323-5Published: 11 April 2018
Softcover ISBN: 978-981-13-4123-6Published: 19 January 2019
eBook ISBN: 978-981-10-8325-9Published: 30 March 2018
Series ISSN: 2520-8268
Series E-ISSN: 2520-8276
Edition Number: 1
Number of Pages: XI, 189
Number of Illustrations: 1 b/w illustrations, 3 illustrations in colour