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A path independent decomposition of the equivalent variation

Author

Listed:
  • Alexandre Gohin

    (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique)

Abstract

This paper proposes a new decomposition of welfare effects simulated by Computable General Equilibrium (CGE) models. Rather than relying on first order approximations, our approach is based on Taylor series approximations of CGE specifications and thus is path independent. This decomposition is useful for explaining the effects of large economic shocks, like international trade agreements.

Suggested Citation

  • Alexandre Gohin, 2006. "A path independent decomposition of the equivalent variation," Post-Print hal-01931559, HAL.
    • Handle: RePEc:hal:journl:hal-01931559
    as

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