Further evidence on the law of factor proportionality in multiple households closed CGE models

Autor:	Yves Balasko, Octávio Augusto Fontes Tourinho
Rok vydání:	2016
Předmět:	Computable general equilibrium Economics and Econometrics General equilibrium theory Endowment Law 0502 economics and business 05 social sciences Economics Proportionality (mathematics) 050206 economic theory Mathematical economics 050205 econometrics Applied general equilibrium
Zdroj:	Applied Economics Letters. 24:831-836
ISSN:	1466-4291 1350-4851
DOI:	10.1080/13504851.2016.1231891
Popis:	This article provides additional evidence that factor contents of different consumers’ consumption bundles computed from multiple households closed Computable General Equilibrium (CGE) models are approximately proportional. This empirical regularity has been observed up to now for a total of 11 CGEs for very diverse countries, and we therefore state it as law. It implies that these models display price rigidity with respect to endowment re-allocations, an observation which has broad implications for their capacity to capture general equilibrium effects.
Databáze:	OpenAIRE
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