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Back to the CGE Mini Model

In: Equilibrium Models in an Applied Framework

Author

Listed:
  • Ronny Norén

    (Mid Sweden University)

Abstract

This chapter, a continuation of Chap. 5, uses the ideas of endogenous obsolescence from Chap. 6 and adapts them to the CGE mini model. In this chapter the feature of endogenous obsolescence is included in the equation representing depreciation expenditure. In that sense, the endogenous transformation process is introduced in the CGE mini-model. In short, the focus of this chapter is to provide examples of structural transformation in an open economy. Thus, the model specification is here, as in Chap. 5, that the total investment equation is determined by total saving, and the allocation to the different industry sectors are influenced by the sector specific rate of return, but now also in terms of endogenous obsolescence.

Suggested Citation

  • Ronny Norén, 2013. "Back to the CGE Mini Model," Lecture Notes in Economics and Mathematical Systems, in: Equilibrium Models in an Applied Framework, edition 127, chapter 0, pages 109-117, Springer.
    • Handle: RePEc:spr:lnechp:978-3-642-34994-2_7
    DOI: 10.1007/978-3-642-34994-2_7
    as

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