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9 - Regulations in a CGE Model

Published online by Cambridge University Press:  11 December 2020

Mary E. Burfisher
Affiliation:
Purdue University, Indiana
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Summary

This chapter examines the treatment of regulations in a computable general equilibrium (CGE) model. Regulations are “command and control” policies that mandate changes in producer or consumer behavior. We study two types of regulations: nontariff measures that can create barriers to international trade and regulations designed to reduce negative externalities in production. We demonstrate the mechanisms used to introduce a technical nontariff measure into a standard CGE model. We describe process-based and outcome-based regulations of externalities and explain their direct and indirect economic impacts. Simple partial equilibrium diagrams illustrate the theoretical effects of the regulations on economic activity and economic efficiency. The results of highly stylized regulatory policy experiments using a CGE model support the theoretical predictions and illustrate modeling methodologies.

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Publisher: Cambridge University Press
Print publication year: 2021

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  • Regulations in a CGE Model
  • Mary E. Burfisher, Purdue University, Indiana
  • Book: Introduction to Computable General Equilibrium Models
  • Online publication: 11 December 2020
  • Chapter DOI: https://doi.org/10.1017/9781108780063.010
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  • Regulations in a CGE Model
  • Mary E. Burfisher, Purdue University, Indiana
  • Book: Introduction to Computable General Equilibrium Models
  • Online publication: 11 December 2020
  • Chapter DOI: https://doi.org/10.1017/9781108780063.010
Available formats
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Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Regulations in a CGE Model
  • Mary E. Burfisher, Purdue University, Indiana
  • Book: Introduction to Computable General Equilibrium Models
  • Online publication: 11 December 2020
  • Chapter DOI: https://doi.org/10.1017/9781108780063.010
Available formats
×