Randall Wigle

How robust is applied general equilibrium analysis

Abstract We argue that applied general equilibrium models should be routinely subject to systematic sensitivity analysis. Such an analysis will lead to policy simulations that capture, to some extent, the uncertainties involved in calibrating such models. Procedures for undertaking and reporting these analyses are proposed, and three illustrative applications are presented.

The Pagan-Shannon Approximation: Unconditional Systematic Sensitivity in Minutes

This paper applies a simple approximation procedure to the calculation of systematic sensitivity results for a well-known computable general equilibrium model. The approximation (based on Pagan and Shannon (1985)) is found to be very accurate and requires little computing time.

Trade liberalisation with imperfect competition : The large and the small of it

Abstract This paper presents a computable general equilibrium world trade model with imperfectly competitive industries in all countries which can be used to evaluate trade liberalisation proposals. We find that the welfare gains from worldwide trade liberalisation can be as much as twice those obtained from models with constant returns to scale and perfect competition. For some large countries, however, trade liberalisation under imperfect competition can lead to smaller welfare gains, or even welfare losses as in the case of the United States.

International Trade in Grains: Domestic Policies and Trade Impacts*

This paper contains a brief summary of the nature of domestic policies and international agreements in agriculture, and an outline of a simple computable gene ral equilibrium model of the grain market. Preliminary results presen ted here suggest that the gains from global liberalization in agricul ture could exceed the gains from further liberalization on trade in m anufactured goods by the developed world. Copyright 1987 by The editors of the Scandinavian Journal of Economics.

Border Delays Re-Emerging Priority: Within-Country Dimensions for Canada

Les retards à la frontière canado-américaine, et les coûts qu’ils impliquent, sont de nouveau une source de préoccupation au Canada. Dans cet article, nous réévaluons leurs impacts économiques, à la lumière de nouvelles recherches économiques et en utilisant un modèle pour réaliser des simulations numériques, afin d’estimer la part de ces impacts, sur le commerce et sur la prospérité économique, que subit chaque région du Canada. Nos résultats montrent qu’il est justifié de craindre les conséquences des retards à la frontière, et que leurs impacts semblent particulièrement importants en Ontario et au Québec. Cela démontre ainsi la pertinence de notre étude en matière de politiques publiques au niveau tant pancanadien que régional, étant donné l’intérêt renouvelé dont font actuellement l’objet les questions touchant la protection à la frontière.

Capitalization, conditionality, and dilution: land prices and the U.S. wheat program.

Abstract This paper argues that conditionality associated with government support programs makes the assessment of their capitalization effects more treacherous than conventionally believed. In the case of the U.S. wheat program, for instance, there is less than full participation by farmers. Participating producers must set aside a specified fraction of their acreage in order qualify for deficiency payments. Given that farms differ in such respects as the variability of yields within the farm and other cost conditions, the additional costs imposed by complying with set-aside requirements may not compensate for the additional benefits from price supports. Because of this conditionality, dilution of capitalization occurs. We illustrate these effects using a general equilibrium model.

Sharing the Burden for Climate Change Mitigation in the Canadian Federation

Dividing the burden for greenhouse gas abatement among the provinces has proven challenging in Canada and contributes to Canadas failure to limit emissions. This paper uses a computable general equilibrium model to compare a number of rules for sharing the burden of emission reductions among Canadian provinces. Because of the substantial heterogeneity among Canadian provinces, these different rules imply significantly different relative abatement effort among provinces, and also significantly different welfare implications. We compare these archetypal burden sharing rules to existing provincial emission reduction commitments and find that none of the standard burden sharing rules comes close to existing commitments.

Uruguay Round Impacts on Canada

This paper offers an evaluation of possible effects of the Final Act of the Uruguay Round with a special focus on Canada. Our two main findings can be summarized as follows: first, the estimated impacts of the Uruguay Round are more modest than previous estimates; our second finding pertains to the liberalization in textiles and clothing which may be the most significant part of the Uruguay Round in terms of its reallocative impact in Canada.

International Process Standards and North-South Trade

This paper examines the choice between alternative trade-based approaches to reducing global environmental damage, such as trade-related process standards and tariff-based approaches. Estimates of the effects of alternative policies are presented, using a calibrated global trade model with pollution externalities. It is found that both trade-related process standards and tariff-based policies are rather ineffective at reducing global emissions. The adoption of general process standards, however, might be exceedingly costly to developing countries. Copyright 1999 by Blackwell Publishing Ltd

The Science and Politics of Global Climate Change: A Guide to the Debate

This third edition has been comprehensively updated to reflect the large changes in scientific knowledge and policy debates on climate change since the previous edition in 2009. It provides a concise but thorough overview of the science, technology, economics, policy, and politics of climate change in a single volume. It explains how scientific and policy debates work, outlines the scientific evidence for the reality and seriousness of climate change and the basic atmospheric science that supports it, and discusses policy options and the current state of the policy debate. By pulling these elements together, the book explains why the issue can be so confusing and provides guidance on practical routes forward. Anyone interested in climate change, the global environment, or how science is used in policy debates should read this book. It is the ideal textbook for undergraduate or graduate courses in environmental policy and climate change.