The Structure of Applied General Equilibrium Models

Unlock the power of applied general equilibrium (AGE) modeling with *The Structure of Applied General Equilibrium Models*, a comprehensive guide by Victor Ginsburgh and Michiel Keyzer, published by The MIT Press. This essential resource, available in a reprinted paperback edition, bridges the often-significant gap between theoretical economic research and practical model building. If you're an economist, researcher, or student grappling with the complexities of AGE models, this book is your key to mastering their intricacies. For too long, applied model builders have struggled to translate the abstract language of theoretical papers into concrete applications, while theoreticians have found the practical adaptations within applied models unrecognizable. Ginsburgh and Keyzer address this disconnect head-on, offering a structured and accessible exploration of the theoretical foundations that underpin real-world AGE models. This book doesn't just present the models; it dissects them, revealing the logic and assumptions that drive their behavior. Starting with a solid foundation in competitive equilibrium theory (Chapter 1) and standard producer and consumer behavior (Chapter 2), *The Structure of Applied General Equilibrium Models* meticulously builds towards advanced topics, ensuring a clear and coherent learning experience. Chapter 3 is a crucial cornerstone, introducing the standardized formats used throughout the book for representing and analyzing models. Crucially, this chapter provides a practical, hands-on approach, walking the reader through the steps required to construct a numerical application using GAMS (General Algebraic Modeling System). You'll get a full GAMS application for the simplest model, providing a tangible starting point for your own explorations. This approach helps ground the theoretical knowledge in practical application. The remaining nine chapters delve into specific, vital model types, covering a wide range of crucial economic issues: * **International Trade:** Explore the impact of trade policies and global interactions through the lens of AGE models. * **Tariffs and Quotas:** Analyze the effects of protectionist measures on market equilibrium and welfare. * **Price Rigidities:** Understand how sticky prices can impact model outcomes and real-world economies. * **Finite-Horizon Dynamics & Infinite-Horizon Dynamics:** Investigate the implications of different time horizons on economic behavior and policy effectiveness. * **Externalities:** Incorporate environmental and social costs and benefits into your models. * **Nonconvexities:** Address situations where standard convexity assumptions are violated, leading to unique challenges. * **Imperfect Competition:** Model markets where firms have market power and strategic interactions. * **Incomplete Asset Markets:** Explore the consequences of limited access to financial instruments. For each model type, the authors thoroughly examine the existence of equilibrium, welfare properties, and, most importantly, how applied models integrate the relevant theoretical concepts. This systematic approach ensures a deep understanding of the models' strengths, limitations, and applicability. *The Structure of Applied General Equilibrium Models* is more than just a textbook; it's a comprehensive reference guide. At 575 pages, it's a substantial work, packed with insights and practical guidance. Whether you are building your own AGE models, trying to understand the inner workings of existing models, or seeking a deeper understanding of general equilibrium theory, this book is an indispensable resource. Don't navigate the complexities of AGE modeling alone let Ginsburgh and Keyzer be your expert guides. The book is written in English, and its ISBN-13 is 9780262571579.