Book contents
- Introduction to Computable General Equilibrium Models
- Introduction to Computable General Equilibrium Models
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Text Boxes
- Acknowledgments
- About This Book
- 1 Introduction to Computable General Equilibrium Models
- 2 Elements of a Computable General Equilibrium Model
- 3 The CGE Model Database
- 4 Final Demand in a CGE Model
- 5 Supply in a CGE Model
- 6 Factors of Production in a CGE Model
- 7 Trade in a CGE Model
- 8 Taxes in a CGE Model
- 9 Regulations in a CGE Model
- 10 Conclusion
- Model Exercises
- Practice and Review Answer Key
- Model Exercise Answer Key
- Book part
- Glossary
- References
- Author Index
- Subject Index
6 - Factors of Production in a CGE Model
Published online by Cambridge University Press: 11 December 2020
Book contents
- Introduction to Computable General Equilibrium Models
- Introduction to Computable General Equilibrium Models
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Text Boxes
- Acknowledgments
- About This Book
- 1 Introduction to Computable General Equilibrium Models
- 2 Elements of a Computable General Equilibrium Model
- 3 The CGE Model Database
- 4 Final Demand in a CGE Model
- 5 Supply in a CGE Model
- 6 Factors of Production in a CGE Model
- 7 Trade in a CGE Model
- 8 Taxes in a CGE Model
- 9 Regulations in a CGE Model
- 10 Conclusion
- Model Exercises
- Practice and Review Answer Key
- Model Exercise Answer Key
- Book part
- Glossary
- References
- Author Index
- Subject Index
Summary
In this chapter, we explore factor markets in a computable general equilibrium (CGE) model. Data in the Social Accounting Matrix (SAM) on factors of production describe factors’ sources of employment and income. Important factor market concepts in the CGE model are factor mobility assumptions, the effects of factor endowment and productivity growth, complementary and substitute factors, full-employment versus unemployment model closures, and the links between changes in factor supply and industry structure and between changes in industry structure and factor prices.
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- Introduction to Computable General Equilibrium Models , pp. 174 - 193Publisher: Cambridge University PressPrint publication year: 2021
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