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  4. A Study on Scale Economies, Imperfect Competition and Computable General Equilibrium Analysis: An Economy-wide Analysis on Government Expenditure
 
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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)
徐世勳  
DOI
922415H002014
URI
http://ntur.lib.ntu.edu.tw//handle/246246/19640
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)
imperfect
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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922415H002014.pdf

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