Get 40% off select print & eBooks in Engineering & Materials or 50% off eBooks in Medicine & Psychology!

Advances in Applied General Equilibrium Modeling

Trade Theory in Computable General Equilibrium Models

Armington, Krugman and Melitz

Authors: Dixon, Peter B., Jerie, Michael, Rimmer, Maureen T.

Free Preview
  • Offers a technically rigorous but readable introduction to modern trade theory
  • Sheds new light on the welfare effects of trade liberalization under different specifications of market structures
  • Provides a blueprint for numerical implementation of modern trade theory in a CGE context
see more benefits

Buy this book

eBook 71,39 €
95,19 € (listprice)
price for Spain (gross)
valid through December 31, 2019
  • ISBN 978-981-10-8325-9
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover 88,39 €
119,59 € (listprice)
price for Spain (gross)
valid through December 31, 2019
  • ISBN 978-981-10-8323-5
  • with online files
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
Softcover 88,39 €
119,59 € (listprice)
price for Spain (gross)
valid through December 31, 2019
  • ISBN 978-981-13-4123-6
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
About this book

This book is for people who want to understand modern trade theory, particularly the Melitz model. It lays out Melitz theory from first principles and relates it to earlier theories of Armington and Krugman. For trade theory specialists, the book produces some significant conclusions. It identifies conditions under which Krugman and Melitz models produce essentially the same results for the welfare effects of trade liberalization as those obtained from Armington, and conditions under which this is not true. These findings will be of interest to academics and policy advisors who need to understand critiques of Armington by proponents of Krugman and Melitz.
For computable general equilibrium (CGE) modelers, the book shows how Melitz-style CGE models can be calibrated, solved and interpreted. A major practical contribution of the book is to show how large-scale Armington models such as GTAP can be converted to Melitz by the addition of a small number of equations and minimal alteration of the original Armington model.
The book describes computational experience in solving Melitz CGE models using GEMPACK software. This experience will be of interest to researchers currently attempting to solve Melitz-based CGE models. Almost all previous Melitz studies have used GAMS software.  Authors of these studies have reported computational difficulties. These difficulties did not occur in this book’s GEMPACK-based computations. 
The book concludes that: (a) CGE modelers can embrace Melitz while retaining their Armington-based models as powerful interpretive devices; and (b) via GEMPACK, large-scale CGE models incorporating Melitz specifications can be solved with no more difficulty than similar-dimensioned Armington models. 

About the authors

Peter Dixon is Professor at the Centre of Policy Studies, Victoria University, Australia, and is known internationally for his work in CGE modeling. Together with colleagues at the IMPACT Project and CoPS, he created the ORANI model and its dynamic successor, MONASH. These models have been prominent in the Australian economic debate for 40 years and have been used as templates for the development of other models throughout the world. He is the principal author of the ORANI and MONASH books published in the North Holland Contributions series. In recent years he has led the development of the USAGE model of the U.S. which is used by the USITC and the departments of Commerce, Homeland Security, Agriculture and Transportation.
Michael Jerie is Senior Research Fellow at the Centre of Policy Studies, Victoria University, Australia. His main research area is developing GEMPACK (General Equilibrium Modelling PACKage), a suite of programs for formulating, solving and interrogating economic models. He is the co-author of numerous GEMPACK documents which are used world-wide by CGE modelers.
Maureen T. Rimmer is Professor at the Centre of Policy Studies, Victoria University, Australia. Her main area of expertise is model development and application. With Peter Dixon she is the co-developer of the MONASH model of the Australian economy. In the last fifteen years she has been a key contributor in the development, application, and documentation of USAGE. She has made major contributions in applications of the model to key policy areas such as the replacement of imported crude oil with domestically produced biofuels, legalization of unauthorized immigrants, and the effects of terrorism events on the U.S. economy.

Table of contents (8 chapters)

Table of contents (8 chapters)
  • Introduction: What’s in the Book and How to Read It

    Pages 1-7

    Dixon, Peter B. (et al.)

  • Armington, Krugman and Melitz as Special Cases of an Encompassing Model

    Pages 9-24

    Dixon, Peter B. (et al.)

  • Optimality in the Armington, Krugman and Melitz Models

    Pages 25-37

    Dixon, Peter B. (et al.)

  • Calibration and Parameter Estimation for a Melitz Sector in a CGE Model

    Pages 39-65

    Dixon, Peter B. (et al.)

  • Melitz Equals Armington Plus Endogenous Productivity and Preferences

    Pages 67-81

    Dixon, Peter B. (et al.)

Buy this book

eBook 71,39 €
95,19 € (listprice)
price for Spain (gross)
valid through December 31, 2019
  • ISBN 978-981-10-8325-9
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover 88,39 €
119,59 € (listprice)
price for Spain (gross)
valid through December 31, 2019
  • ISBN 978-981-10-8323-5
  • with online files
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
Softcover 88,39 €
119,59 € (listprice)
price for Spain (gross)
valid through December 31, 2019
  • ISBN 978-981-13-4123-6
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
Loading...

Recommended for you

Loading...

Bibliographic Information

Bibliographic Information
Book Title
Trade Theory in Computable General Equilibrium Models
Book Subtitle
Armington, Krugman and Melitz
Authors
Series Title
Advances in Applied General Equilibrium Modeling
Copyright
2018
Publisher
Springer Singapore
Copyright Holder
Springer Nature Singapore Pte Ltd.
eBook ISBN
978-981-10-8325-9
DOI
10.1007/978-981-10-8325-9
Hardcover ISBN
978-981-10-8323-5
Softcover ISBN
978-981-13-4123-6
Series ISSN
2520-8268
Edition Number
1
Number of Pages
XI, 189
Number of Illustrations
1 b/w illustrations, 3 illustrations in colour
Topics