An algorithm for sequential solutions of dynamic CGE models with perfect foresight over an infinite numbers of periods

We describe a simple algorithm that permits the sequential (period-by-period) solution of large-scale dynamic CGE models with agents who have perfect foresight over an infinite number of periods. The algorithm requires neither any assumptions about behavior in a ?final? period nor that the base case economy be currently in steady state. We briefly illustrate the algorithm with an analysis of substituting a flat tax for all income taxes in the United States.

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Year of publication:	2006
Authors:	Tideman, T. Nicolaus ; Plassmann, Florenz
Institutions:	Department of Economics, Virginia Polytechnic Institute and State University (Virginia Tech)
Subject:	Computable General Equilibrium \| Perfect Foresight \| Rational Expectations

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	18 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10005704239