Short-run rigidities and long-run adjustments in a computable general equilibrium model of income distribution and development

1983 ◽  
Vol 13 (1-2) ◽  
pp. 21-43 ◽  
Author(s):  
F. Bourguignon ◽  
G. Michel ◽  
D. Miqueu
Keyword(s):  
Income Distribution ◽  
General Equilibrium ◽  
Equilibrium Model ◽  
Computable General Equilibrium ◽  
Computable General Equilibrium Model ◽  
General Equilibrium Model ◽  
Long Run ◽  
Short Run

scholarly journals A computable general equilibrium model to analyze distributive aspects in Brazil with a trade policy illustration

2005 ◽  
Vol 35 (4) ◽  
pp. 739-765 ◽  
Author(s):  
Samir Cury ◽  
Allexandro Mori Coelho ◽  
Carlos Henrique Corseuil
Keyword(s):  
Income Distribution ◽  
General Equilibrium ◽  
Equilibrium Model ◽  
Computable General Equilibrium ◽  
Value Added ◽  
Computable General Equilibrium Model ◽  
General Equilibrium Model ◽  
Income Transfers ◽  
Distribution Process ◽  
Propagation Methods

This paper presents a Computable General Equilibrium model specified to simulate the policy impacts on income distribution in Brazil, with complex and systemic propagation methods. To capture the distributive impacts, the model adopts a design focused on the separation of production and institutional factors, as labor and households. The model has three blocks: product and factor markets, and a block that handles with income transfers among institutions. The labor market specification incorporates a recent theoretical advance that allows the determination of involuntary unemployment in the equilibrium. The third block specifies the distribution of the value added among production factors and the redistribution of income among agents/institutions. The simulations of a partial economic "closure" show modest welfare reduction for most workers and families. Also, we checked that the homogeneity property of the model holds only with full indexation of all income transfers, which has important implications for the income distribution process modeling.

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