Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74275
Authors: 
Roson, Roberto
Year of Publication: 
2006
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 3.2006
Abstract: 
This paper considers the technical aspects and the consequences, in terms of simulation results and policy assessment, of introducing imperfect competition in a CGE model. The modifications to the standard CGE framework needed to model imperfect competition in some industries are briefly discussed. Next, the paper discusses whether, how much and why, those changes may affect the qualitative output of a typical simulation experiment. It is argued that technical choices made in designing the model structure may have a significant impact on the model behavior. This is especially evident when the output of the model, under an imperfect competition closure, is compared with that obtained under a standard closure, assuming perfect competition. As an illustration, a scenario of agricultural trade liberalization under alternative market structures is analyzed.
Subjects: 
Computable general equilibrium models
Imperfect competition
Oligopolistic models
Economies of scale
Empirical industrial organization
Agriculture
Trade liberalization
Trade policy
JEL: 
D58
F12
L16
Document Type: 
Working Paper

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