General equilibrium models for the Chilean economy
General equilibrium theory and modeling have proved to be useful for understanding economic interactions between markets and agents and the determination of prices and quantities. Applied general equilibrium models (GEM) have been developed and used to address a wide range of theoretical questions and empirical/policy issues, in the fields of macroeconomics, international trade, public finance, and environmental analysis, among others. This volume—the first of its kind in Chile—comprises a representative collection of recent GEM research and applications that illustrate the usefulness and relevance of frontier general equilibrium tools for better understanding aggregate structures and policy responses. It should be of interest to academics and policymakers in Chile and elsewhere, for several reasons. First, Chile is known for implementing bold and innovative economic policies. The assessment and quantification of potential effects is particularly valuable when performed by using the types of models presented herein. Second, this book includes a variety of methodological choices available to address key issues. The thoughtful combination of empirical and theoretical considerations informs the user about model strengths and weaknesses and the types of questions that they are able to address. Finally, the volume also presents some novel methodological contributions to the empirical and theoretical literature on general equilibrium models.General equilibrium models : an overview / Rómulo A. Chumacero, Klaus Schmidt-Hebbel -- Response to external and inflation schcks in a small open economy / Vittorio Corbo, José Tessada -- Monetary transmission mechanism in Chile : a medium-sized macroeconometric model / Carlos García ... [et al.] -- General equilibrium dynamics of foreign shocks and policy changes in Chile / Francisco A. Gallego, Klaus Schmidt-Hebbel, Luis Servén -- On the determinants of chilean economics growth / Rómulo Chumacero, J. Rofrigo Fuentes -- How well does a monetary dynamic equilibrium model account for chilean data? / Roberto Duncan -- Testing real business cycle models in an emerging economy / Raphael Bergoeing, Raimundo Soto -- Toolkit for analyzing alternative policies in the chilean economy / Rómulo A. Chumacero -- Chile´s regional arrangements : the importance of market access and lowering the tariff to six percent / Glenn W. Harrison, Thomas F. Rutherford, David G. Tarr -- General equilibrium analysis of a fuel tax increase in Chile / Raúl O’Ryan, Carlos J. De Miguel, Sebastián Miller -- Imperfect labor mobility, urban unemployment and agricultural trade reform in Chile / David Holland... [et al.] -- Labor market distortions, employment and grwth : the recent chilean experience / Raphael Bergoeing, Felipe Morandé, Facundo Piguillem -- Tax incentives for retirement savings : simulation results in the presence of liquidity constraints and heterogeneous consumers in an OLG-GE model / Rodrigo Cifuentes.