A simple fixed point algorithm for a static general equilibrium model with tax policies

概要

論文の詳細を見る
A purely theoretical representation of an economy in the Walrasian general equilibrium framework has not been amenable to empirical work, and many applied researchers following this approach have quickly faced insurmountable difficulties in dealing with multi-dimensional empirical issues. We applied a simple fixed point algorithm to the general equilibrium model to demonstrate that the algorithm can efficiently execute a structurally more complex general equilibrium model with various tax policy options than the model used in our earlier paper (Tanaka and Kawano, 1996). We believe that this algorithm can be of considerable empirical use. We followed the solution procedure set out by Shoven and Whalley (1984, 1992) who considerably simplified the general equilibrium solution procedure by elegantly reducing the dimensionality of the solution space to the number of factors of production in the Walrasian general equilibrium structure. The main strengths of the algorithm are (1) simplicity in both concept and programming, (2) ease of calculations (since it does not require either simplex or Jacobian calculations), (3) increased accuracy, and (4) assured convergence of the required parameter values with the conditions of uniqueness and stability.
青森公立大学の論文