Capros P., P. Karadeloglou and G.N. Mentzas (1988) "An Applied General Equilibrium Model for Greece"
Paper presented at the First Conference of the Greek Economic Association, 14-16 December, Athens.
In this paper we design and estimate an one-sector model based on general equilibrium theory, the first ever constructed on Greek data. The design of the model follows current trends in applied (or computable) general equilibrium theory. The model presented is formulated for three markets-goods, labour and foreign trade and the respective equilibrium prices are determined. Two simpler versions, equilibrating one market (goods) and two markets (goods and labour) are formulated, tested and compared. The presentation of the theoretical model and the econometrically estimated coefficients is followed by an analytical examination of the functioning of the model, its properties and its policy implications. The policy simulation exercises carried out concern development aspects, tax policy and foreign trade aspects.
Paper available on request (hard copy only)
