Computable General Equilibrium (CGE) models are among the most influential tools in applied economics. In the past few years, however, some serious questions have been raised about the validity of these models. The core of the critique is that the parameter selection criteria and the functional forms used are at odds with contemporary standards of practice in econometrics. After surveying the relevant literature, which I refer to as the 'econometric critique', a formal summary of the case against standard CGE modeling is presented, as is an alternative econometric-based modeling strategy which answers the critique. I then work through a comparative CGE modeling experiment designed to assess the contrasting methods. It is found that the parameter selection rule influences model predictions in individual sectors, but industry- and economy-wide aggregates do not appear to be much affected by reparameterizing a CGE model according to econometric criteria. By contrast, the choice of functional forms affects not only industry-specific results, but aggregate results as well, even for small policy shocks. However flexible functional forms are difficult to implement in CGE models because global monotonicity must be maintained. In the second and third chapters, I adapt one of the models to analyze the effects of carbon taxes in Canada. I review an approach called 'double dividend' taxation, in which the revenues from carbon taxes are used to reduce the rates of other distortionary taxes, so an overall efficiency gain can potentially be realized whether or not the reduction in pollution improves welfare. This eliminates the need to measure benefits, and in an international context, would obviate the free-rider problem. I demonstrate the existence of a double dividend strategy for carbon taxation in Canada in the short run. In chapter three, however, a long run extension of the model shows that the double dividend does not persist over time. Nevertheless, choosing an efficient revenue-recycling option can significantly reduce the implementation cost of the carbon tax. / Arts, Faculty of / Vancouver School of Economics / Graduate

This study investigates the relationship between stagflation and price stability and full employment and four economic scenarios and the economic condition. The data used in the study were obtained from government publications and were analyzed using hierarchical multiple regression. The standard inferential apparatus were employed. Give independent variables were found to be significant in explaining the causes of stagflation. These were: absolute change in M1, oil embargo of 1974, corporate profits, output per hour, and Iranian crisis of 1979. In conclusion, the causes of economic instability do not rest with one single theory or factor, but a combination of several.

In the second essay, we analyze the possibility of generating indeterminacy in the monetary models with nominal rigidities under increasing returns to scale technology. We find that in the monetary models with flexible wage (prices can be either flexible or staggered), the minimum degree of returns to scale necessary for local indeterminacy is inversely related to the magnitude of the labor-supply elasticity. This result is consistent with the one obtained in a real model in Benhabib and Farmer (1994), in particular, indeterminacy can only occur under very large labor-supply elasticity. Furthermore, we show that when incorporating nominal wage rigidities, indeterminacy can occur under an empirically plausible labor supply elasticity. However, the role of nominal rigidities for indeterminacy is very sensitive to the degree of capital adjustment costs, but it is robust to the assumptions of timing and the degrees of nominal rigidities. / The first essay discusses about indeterminacy under interest rate policy. We show that, with endogenous investment, virtually all monetary policy rules that set a nominal interest rate in response solely to expected future inflation induce real indeterminacy in models with (i) staggered prices, (ii) staggered prices and staggered wages, and (iii) staggered prices, staggered wages, and firm-specific capital. In (i), policy's response to current output can help significantly in ensuring determinacy with an infinite labor supply elasticity, but little with empirically plausible labor supply elasticity. In (ii), responding to output always helps a great deal, though under low price stickiness and without capital adjustment cost it may call for a moderate response to output in order to ensure determinacy for a wide range of response to inflation. In (iii), even a tiny response to output can always render equilibrium determinate for a wide range of response to inflation. We also find that the policy's response to lagged interest rate further enhances macroeconomic stability, though in many cases some response to output is still essential for ensuring a nonempty determinacy region, and even in the other cases responding to output often remains important in order to ensure determinacy for a wide range of response to inflation. Our results are quantitatively invariant to the presence of habit persistence in consumption. / The third essay studies the stability puzzle (Evans and McGough, 2002): why does indeterminacy almost always imply expectational unstability in RBC models? Following Meng and Yip (2008), we relax the restrictions on the magnitude of capital externalities with Cobb-Douglas technology. We find regions for joint indeterminacy and E-stability (i) when the felicity function is separable in consumption and leisure and there are negative capital externalities; or (ii) when the felicity function is non-separable and the social elasticity of production with respect to capital exceeds one. We further show that with the general utility function, a necessary condition for joint indeterminacy and E-stability is that the labor-demand curve is upward-sloping and steeper than the Frisch labor-supply curve. / This thesis consists of three essays on the issues of monetary policy, indeterminacy and expectational stability (E-stability). / Xue, Jianpo. / Adviser: Qinglai Meng. / Source: Dissertation Abstracts International, Volume: 70-06, Section: A, page: 2178. / Thesis (Ph.D.)--Chinese University of Hong Kong, 2008. / Includes bibliographical references. / Electronic reproduction. Hong Kong : Chinese University of Hong Kong, [2012] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Electronic reproduction. [Ann Arbor, MI] : ProQuest Information and Learning, [200-] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Electronic reproduction. Ann Arbor, MI : ProQuest dissertations and theses, [201-] System requirements: Adobe Acrobat Reader. Available via World Wide Web. / Abstracts in English and Chinese. / School code: 1307.

Xu Nan. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2006. / Includes bibliographical references (leaves 47-49). / Abstracts in English and Chinese. / Chapter 1. --- Introduction --- p.1 / Chapter 2. --- Various Preference and Technology Specifications and Indeterminacy --- p.5 / Chapter 2.1 --- CES Preference and Cobb-Douglas Technology --- p.7 / Chapter 2.2 --- Separable Utility and CES Technology --- p.16 / Chapter 2.3 --- Summary --- p.20 / Chapter 3. --- Capacity Utilization and Indeterminacy --- p.20 / Chapter 3.1 --- Separable Utility and Capacity Utilization --- p.21 / Chapter 3.2 --- Non-separable Utility and Capacity Utilization --- p.26 / Chapter 4. --- Production Depending on Average Consumption and Capital and Indeterminacy --- p.30 / Chapter 4.1 --- Production Depending on Aggregate Consumption and Capital --- p.32 / Chapter 4.2 --- Equivalence between the Two Settings --- p.36 / Chapter 5 . --- Concluding Remarks --- p.39 / Chapter 6. --- Appendix --- p.42 / Chapter 6.1 --- Properties of CES Utility Function --- p.42 / Chapter 6.2 --- Proof of Proposition 1 --- p.43 / Chapter 6.3 --- Derivation of Production Function in Section 3 --- p.45 / Chapter 6.4 --- Derivation of Depreciation Rate in subsection 3.2 --- p.46 / References --- p.47

by Tsang Wai-Hung. / Thesis sumbitted in: December 1997. / Thesis (M.Phil.)--Chinese University of Hong Kong, 1998. / Includes bibliographical references (leaves 46-48). / Abstract also in Chinese. / Acknowledgements --- p.ii / Abstract --- p.iii / Table of Contents --- p.v / Chapter / Chapter I. --- Introduction --- p.1 / Chapter II. --- Model and Main Results --- p.8 / Chapter III. --- Proofs --- p.16 / Chapter IV. --- Correlated Equilibrium and Myopic-Consistent Equilibrium --- p.29 / Chapter V. --- Application --- p.33 / Chapter VI. --- Conclusion --- p.36 / Chapter VII. --- Appendix --- p.37 / Reference --- p.46

Moy Hon-man. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2005. / Includes bibliographical references (leaf 62). / Abstracts in English and Chinese. / Chapter 1 --- Introduction and Literature Review --- p.1 / Chapter 1.1 --- Introduction --- p.1 / Chapter 1.2 --- Literature Review --- p.4 / Chapter 2 --- Non-optimizing Model with Illegal Migrants --- p.9 / Chapter 2.1 --- One-sector Non-optimizing Model --- p.9 / Chapter 2.1.1 --- Illegal Migrants --- p.9 / Chapter 2.1.2 --- Production --- p.10 / Chapter 2.1.3 --- Equilibrium Analysis --- p.11 / Chapter 2.2 --- Two-sector Non-optimizing Model: Illegal Migrants in Consump- tion Sector --- p.12 / Chapter 2.2.1 --- Production --- p.13 / Chapter 2.2.2 --- Total Output and Law of Motion for Capital --- p.14 / Chapter 2.2.3 --- Equilibrium Analysis --- p.15 / Chapter 2.3 --- Two-sector Non-optimizing Model: Illegal Migrants in Invest- ment Sector --- p.17 / Chapter 2.3.1 --- Production --- p.17 / Chapter 2.3.2 --- Total Output and Law of Motion for Capital --- p.18 / Chapter 2.3.3 --- Equilibrium Analysis --- p.18 / Chapter 2.4 --- Two-sector Non-optimizing Model: Illegal Migrants in both Sectors --- p.20 / Chapter 2.4.1 --- Production --- p.20 / Chapter 2.4.2 --- Total Output and Law of Motion for Capital --- p.21 / Chapter 2.4.3 --- Equilibrium Analysis --- p.22 / Chapter 2.5 --- Parameterizing the Two-sector Non-optimizing Models --- p.24 / Chapter 2.6 --- Simulation Results: Two-sector Non-optimizing Models --- p.25 / Chapter 3 --- One-sector Optimizing Model with Illegal Migrants --- p.28 / Chapter 3.1 --- One-sector Optimizing Model with Exogenous Wage --- p.28 / Chapter 3.1.1 --- Production --- p.28 / Chapter 3.1.2 --- The Maximization Problem --- p.29 / Chapter 3.2 --- One-sector Optimizing Model with Endogenous Wage: The Hazari Sgro Model with Illegal Migrants --- p.32 / Chapter 3.2.1 --- The Basic Structure --- p.32 / Chapter 3.2.2 --- Equilibrium Analysis --- p.34 / Chapter 3.2.3 --- Parameterizing the Model --- p.36 / Chapter 4 --- Two-sector Optimizing Model with Illegal Migrants --- p.38 / Chapter 4.1 --- Two-sector Optimizing Model with Exogenous Wage: Illegal Migrants in Consumption Sector --- p.38 / Chapter 4.1.1 --- Production --- p.38 / Chapter 4.1.2 --- The Maximization Problem --- p.39 / Chapter 4.2 --- Two-sector Optimizing Model with Exogenous Wage: Illegal Mi- grants in Investment Sector --- p.42 / Chapter 4.2.1 --- Production --- p.42 / Chapter 4.2.2 --- The Maximization Problem --- p.43 / Chapter 4.3 --- Two-sector Optimizing Model with Exogenous Wage: Illegal Mi- grants in both Sectors --- p.45 / Chapter 4.3.1 --- Production --- p.46 / Chapter 4.3.2 --- The Maximization Problem --- p.46 / Chapter 4.4 --- Analytical Insights --- p.49 / Chapter 4.5 --- Two-sector Optimizing Model with Endogenous Wage: Illegal Migrants in Consumption Sector --- p.50 / Chapter 4.6 --- Two-sector Optimizing Model with Endogenous Wage: Illegal Migrants in Investment Sector --- p.52 / Chapter 4.7 --- Two-sector Optimizing Model with Endogenous Wage: Illegal Migrants in both Sectors --- p.53 / Chapter 4.8 --- Parameterizing the Models --- p.55 / Chapter 4.9 --- Simulation Results --- p.55 / Chapter 4.9.1 --- Simulation Results: Two-sector Optimizing Model with Exogenous Wage --- p.55 / Chapter 4.9.2 --- Simulation Results: Two-sector Optimizing Model with Endogenous Wage --- p.57 / Chapter 5 --- Concluding Remarks --- p.60 / Figures and Tables --- p.64

Sun, Wu. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2008. / Includes bibliographical references (leaves 43-45). / Abstracts in English and Chinese. / Abstract --- p.I / 摘要 --- p.II / Acknowledgments --- p.III / Chapter Essay 1. --- The Effect of Impatience on Determinacy --- p.1 / Chapter 1.1 --- Introduction --- p.1 / Chapter 1.2 --- The model --- p.2 / Chapter 1.3 --- Conclusion --- p.8 / Chapter Essay 2. --- Determinacy under Non-separable Utility --- p.9 / Chapter 2.1 --- Introduction --- p.9 / Chapter 2.2 --- The basic model --- p.10 / Chapter 2.3 --- Conclusion --- p.21 / Chapter Essay 3. --- Determinacy under Calvo-Style Sticky Price Model --- p.23 / Chapter 3.1 --- Introduction --- p.23 / Chapter 3.2 --- The model --- p.24 / Chapter 3.2.1 --- With staggered price only --- p.24 / Chapter 3.2.2 --- Incorporating firm-specific capital --- p.30 / Chapter 3.2.3 --- Incorporating staggered wages --- p.35 / Chapter 3.3 --- Conclusion --- p.41 / Reference --- p.43 / Appendix --- p.46 / Table 1: Baseline Calibration --- p.46 / Table 2: Baseline Calibration --- p.46

In explaining why service prices differ across countries (both developed and developing countries), most studies have paid attention to the role of structural variables such as population, trade balance, resource abundance etc., by using a full employment assumption. Due to the existence of high urban unemployment in developing countries, the assumption of full employment is not suitable. The objective of this study is to build general equilibrium models that can be used to explain the service price differences across developing countries by incorporating rural-urban migration and urban unemployment. Internal migration from rural to urban areas is allowed because of distortions in labor market. The current work includes structural variables that are used in the literature, such as agricultural land, mineral resources, labor endowment, trade deficit, population, and tourism, along with 2 new variables, manufacturing capital and services capital. This study also considers the effects of macroeconomic policies (fiscal and monetary policies) on service prices which are neglected in the literature. The theoretical models suggest that, ceteris paribus, larger land area, mineral resources, higher trade deficits, tourist receipts, and money supply increase service prices, but larger populations reduce service prices. The effects of services capital, labor force, the terms of trade, and government spending are ambiguous from the theoretical models. An empirical study is performed to test the theoretical implications. The empirical results suggest that larger endowments of land, mineral resources, manufacturing capital, labor force, and services capital, as well as higher trade deficits, tourist receipts, government spending, and money supply increase the service prices. Conversely, larger populations reduce service prices as predicted. / Graduation date: 1993

Thesis (Ph. D.)--University of Hawaii at Manoa, 2004. / Includes bibliographical references (leaves 173-180).

Thesis (Ph. D.)--University of Oregon, 2003. / Typescript. Includes vita and abstract. Includes bibliographical references (leaves 139-142). Also available for download via the World Wide Web; free to University of Oregon users.