Banco Central de ChileVolume 9: General Equilibrium Models For The Chilean Economy
Edited by Rómulo A. Chumacero y Klaus Schmidt-Hebbel. - ISBN 956-7421-21-8
General equilibrium theory and modeling have proved to be useful for understanding economic interactions between markets and agents and the determination of prices and quantities. Applied general equilibrium models (GEM) have been developed and used to address a wide range of theoretical questions and empirical/policy issues, in the fields of macroeconomics, international trade, public finance, and environmental analysis, among others.
This volume—the first of its kind in Chile—comprises a representative collection of recent GEM research and applications that illustrate the usefulness and relevance of frontier general equilibrium tools for better understanding aggregate structures and policy responses. It should be of interest to academics and policymakers in Chile and elsewhere, for several reasons. First, Chile is known for implementing bold and innovative economic policies. The assessment and quantification of potential effects is particularly valuable when performed by using the types of models presented herein. Second, this book includes a variety of methodological choices available to address key issues. The thoughtful combination of empirical and theoretical considerations informs the user about model strengths and weaknesses and the types of questions that they are able to address. Finally, the volume also presents some novel methodological contributions to the empirical and theoretical literature on general equilibrium models.
The broad scope of the issues covered and the wide spectrum of methodological choices presented in this book show how active the profession is in providing a better characterization and a more precise evaluation of policy reforms. Vigorous contrast of different perspectives and rigorous academic debate of these topics are invaluable for contributing to more informed policy decisions. The combination of theoretical models and sound statistical techniques provides a framework for confronting theory and reality. This volume shows a sample of the best tools currently available.
Comments
"This volume includes a valuable collection of studies that apply general equilibrim models to a range of Chilean policy questions. These studies assess systematically a number of the innovative policies that have bcen introduced in Chile using a variety of methodological approaches. The compilation of the different approaches into one set of studies, moreover, illustrates a number of strengths and weaknesses of the different approaches The collection will be very useful, therefore, for academics and policymakers not oilly with interests in Chile. It Also with interests in general equilibrium analysis of other economies."
Jere R. Behrman, University of PennsyIvania.
"This book contains a rich set of applied general equilibrium studies that adIdress a number of important Chilean policy issues. The book is of value to both academics and policy makers in Chile and elsewhere. The general equilibrium methodics developed and applied in these studies can be used to assess quantitatively the consequences of innovative economic policies that are under consideration, or warrant consideration."
Edward C Prescott, Arizona State University, Nobel Prize for Economic Sciences.
"Over the past two decades policy makers around the world have struggled with some very basic questions. Why do we need labor market regulations? How much do they affect long-run growth and income inequality? Who benefits from minimum wage legislation and employment security laws? Who loses? The chapters in this book provide new answers, with special emphasis on experiences of Chile and Latin America. Using the latest theoretical tools and empirical methods, they offer an informative and balanced perspective that will be of interest to practitioners and specialists alike."
David Card, University of California at Berkeley.
Table of Contents
The following documents are in Acrobat format.