A Study on Scale Economies, Imperfect Competition and Computable General Equilibrium Analysis: An Economy-wide Analysis on Government Expenditure
Date Issued
2004-07-31
Date
2004-07-31
Author(s)
DOI
922415H002014
Abstract
In a pioneering paper, Harris (1984)
emphasized the importance of imperfect
competition and economies of scale in
understanding the effects of trade
liberalization on the Canadian economy
within an applied general equilibrium
framework. The objective of this
research is to examine the short run and
long run effects of the increase of
government expenditure on the Taiwan
economy using an applied general
equilibrium model, which incorporates
economies of scale and imperfect
competition. Economies of scale are
incorporated in the model at the industry
level and the firm level. The pricing
behavior is modeled as perfectly
competitive, monopolisitically
competitive and in other ad hoc ways, as
in Harris (1984). The different
assumptions about technology, pricing
behavior and firm entry are combined in
various ways to produce a variety of
scenarios in our simulations. If the
market structure like imperfect competition and economies of scale is
important in understanding the effects of
government expenditure expansion on
Taiwan economy within an applied
general equilibrium framework, an
overhaul on economy-wide analysis on
Taiwan’s WTO accession, free trade
agreement, industrial structure
forecasting and GHG emission baseline
forecasting is indispensable.
Subjects
Computable General
Equilibrium (CGE)
Equilibrium (CGE)
imperfect
competition
competition
economies of scale
Publisher
臺北市:國立臺灣大學農業經濟學系暨研究所
Type
journal article
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