In this paper we present a large scale computable general equilibrium model derived from GEM-E3 model for European Union with three geographical areas and 18 different sectors. We do simulations with GAMS-PATH software algorithm which is based on mix complementarity (FOC and shadow prices). This...

The paper deals with the efficient computation of general equilibrium models with a continuum of heterogenous agents. It compares an improved version of the Krusell-Smith algorithm to a backward-induction algorithm. The Krusell-Smith algorithm I use in the paper modifies the original algorithm...

This paper is my ongoing research on welfare analysis using real business cycle approach. In this paper, I have modeled heterogeneous households with different income potential and paying different tax rates. The model incorporates progressive tax rates and computes its effects on the welfare of...

We use a dynamic general equilibrium model of the world economy to assess the economic implications of higher vulnerability from extreme meteorological events. In particular, we consider the impact of climate change on ENSO/NAO cycles, and the implied variation on regional expected damages, due...

Capital adequacy regulations specify a minimum capital-to-assets ratio for banks in the economy. The effects of these regulations on the level of economic activity have not been thoroughly studied by the banking regulation literature. Specifically, the fact that as proposed by the Basle Accords,...

This paper introduces a simulation model extending the well known Capital Asset Pricing Model by Sharpe and Lintner. Investors are modeled as multi-period forward looking portfolio optimizers. However, the future is not known \emph{a priori}, but has to be modeled and estimated. We allow agents...

This paper studies the effects of social insurance policies on the level and distribution of welfare and resources in a general equilibrium model of a closed economy with a continuum of agents and moral hazard. In order to simulate the welfare-state tradeoff between efficiency and equality, I...

On the one hand, recently a number of theoretical models have highlighted the role of credit market frictions in propagating and amplifying macroeconomic shocks. On the other hand, it still seems an open question whether this role is quantitatively significant. Our paper tries to fill this gap....