Peter J Wilcoxen > Computational General Equilibrium

Model Design

How to design an appropriate model for a given task. Choosing the number and type of agents; modeling the behavior of households and firms.

Overarching Issues

Intertemporal Optimization
Functional Forms
A list of commonly used functional forms. Also contains a link to a PDF quick reference guide.
Data Availability

Households

Consumption
Demand systems for goods and services; income elasticities; functional forms.
Saving
Permanent income model; extended linear expenditure system; Keynesian consumption function.
Labor Supply

Firms

Production
Factor demand systems; constant returns to scale and zero profits; increasing returns to scale; joint production.
Investment
Sector-specific capital; costs of adjustment; time to build.

International

Trade
Finance

Additional Resources

Selected Readings
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Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 09/05/2004