Capros P., P. Karadeloglou and G.N. Mentzas (1989) "On the Role of Labour and Foreign Markets in Applied General Equilibrium Modelling"
Paper presented at the IXth World Congress of the International Economic Association, 28/8-1/9, Athens.
The aim of this paper is to analyse and comparatively evaluate different wage-setting and exchange rate-settings regimes within the context of applied general equilibrium modelling. In the paper we design, build and empirically estimate a 3-markets and 30-equations computable general equilibrium model. We carry out empirical analysis of the above issue, by comparing the behaviour of different variants of the model in which different formulations are included concerning the determination of prices, the wage rate and/or the exchange rate. These variants try to represent formally rigidities and imperfections in the markets and evaluate their consequences. The paper aims at providing policy-oriented results, since the empirical analysis concerns key issues included in the process of the European Market Integrations of 1992. Within this process we investigate for the role of rigidities in the markets of the Greek Economy.
Paper available on request (hard copy only).
