Title: An applied general equilibrium model of the Swedish economy
Abstract: Publisher Summary This chapter presents a relatively small computable or applied general equilibrium model that can be used to analyze medium and long run structural issues. One of the main motives behind the construction of the model was a desire to complement the calculations of distributional effects of the Swedish tax reform, implemented during 1990−91, that were based on tax-benefit models. Although these models replicate the tax system in great detail, they only capture direct impact effects as they do not incorporate any economic behavior. The cost of the more sophisticated economic analysis is that the tax reform is modeled in a very stylized fashion through a small number of effective tax rates. The applied general equilibrium model focuses on sectoral allocation of factors of production, labor supply, and consumption patterns, in response to a change in economic policy or other exogenous variables. The model belongs to the tradition of static computable general equilibrium models.
Publication Year: 2010
Publication Date: 2010-02-20
Language: en
Type: book-chapter
Indexed In: ['crossref']
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