Given the connectedness of most states with their neighbors, any economic analysis of changes in a state's policy needs to account for the interdependence between states. We examine in how much detail one needs to model the factor and commodity flows between states, and how much, if anything, is...

We construct a two-period general equilibrium model to evaluate policies affecting agricultural migration and exports. The model is applied to Mexico for the period 1986-1987 to obtain certain qualitative policy conclusions related to the 'Dutch disease' brought about by oil price increases....

We construct a two-part model of the Chinese economy. The first part consists of a money-supply equation, a real money-demand equation, and a savings equation. The second part comprises a set of sectoral equations. The estimated model is then used to generate a dynamic simulation of the paths of...

This study develops a dynamic general equilibrium model in which optimizing agents evade taxes by operating in the underground economy. The cost to firms of evading taxes is that they find themselves subject to credit rationing from banks. Our model simulations show that in the absence of...