Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89708
Authors: 
Brekke, Kjell Arne
Golombek, Rolf
Kaut, Michal
Kittelsen, Sverre A.C.
Wallace, Stein W.
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4500
Abstract: 
We present a simple approach to transform a deterministic numerical model, where several agents simultaneously make decisions, into a stochastic model. This approach, which builds on scenario aggregation, a numerical method developed to solve decision problems under uncertainty, is used to build a large stochastic numerical equilibrium model of the Western European energy markets. We use the stochastic model to analyze the impact of economic and political uncertainty on the Western European energy markets. We demonstrate that the equilibria under uncertainty differ significantly from the deterministic outcomes.
JEL: 
C63
C68
D58
D81
Q28
Q40
Q54
Document Type: 
Working Paper

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