A Rational Expectations Model for Simulation and Policy Evaluation of the Spanish Economy

This paper describes a Rational Expectations Model of the Spanish economy, REMS, which is in the tradition of small open economy dynamic general equilibrium models, with a strongly microfounded system of equations. The model is built on standard elements, but incorporates some distinctive features to provide an accurate description of the Spanish economy. We contribute to the existing models of the Spanish economy by adding search and matching rigidities to a small open economy framework. Our model also incorporates habits in consumption and rule-of-thumb households. As Spain is a member of EMU, we model the interaction between a small open economy and monetary policy in a monetary union. The model is primarily constructed to serve as a simulation tool at the Spanish Ministry of Economic Affairs and Finance. As such, it provides a great deal of information regarding the transmission of policy shocks to economic outcomes. The paper describes the structure of the model in detail, as well as the estimation and calibration technique and some examples of simulations.general equilibrium, rigidities, policy simulations

Tax Reforms and Labour-market Performance: An Evaluation for Spain using REMS

This paper uses REMS, a Rational Expectations Model of the Spanish economy designed by Boscá et al (2007), to analyse the effects of lowering the overall tax wedge to the level prevailing in the US. Our results partially confirm previous findings in the literature: a reduction in the overall tax wedge of 19.5 points, in order to reach the US levels, has a positive effect in the long run, increasing total hours by about 7 per cent and GDP by about 8 percentage points. In terms of GDP per adult, these results account for 1/4 of the gap with respect to the US, but imply a reduction of only one percentage point in the labour productivity gap. The rise in total hours per adult is explained by a similar increase in both hours per employee and the employment rate of about 3.5 percentage points, allowing hours per adult to converge to levels only slightly lower than those in the US.general equilibrium, tax wedge, tax reforms, fiscal policy, labour market

Optimal Cell Clustering and Activation for Energy Saving in Load-Coupled Wireless Networks

Optimizing activation and deactivation of base station transmissions provides an instrument for improving energy efficiency in cellular networks. In this paper, we study optimal cell clustering and scheduling of activation duration for each cluster, with the objective of minimizing the sum energy, subject to a time constraint of delivering the users' traffic demand. The cells within a cluster are simultaneously in transmission and napping modes, with cluster activation and deactivation, respectively. Our optimization framework accounts for the coupling relation among cells due to the mutual interference. Thus, the users' achievable rates in a cell depend on the cluster composition. On the theoretical side, we provide mathematical formulation and structural characterization for the energy-efficient cell clustering and scheduling optimization problem, and prove its NP hardness. On the algorithmic side, we first show how column generation facilitates problem solving, and then present our notion of local enumeration as a flexible and effective means for dealing with the trade-off between optimality and the combinatorial nature of cluster formation, as well as for the purpose of gauging the deviation from optimality. Numerical results demonstrate that our solutions achieve more than 60% energy saving over existing schemes, and that the solutions we obtain are within a few percent of deviation from global optimum.Comment: Revision, IEEE Transactions on Wireless Communication

Energy and Resource Allocation: A Dynamic Model of the "Dutch Disease"

It is well known that a domestic resource discovery gives rise to wealth effects that cause a squeeze of the tradeable good sector of an open economy. The decline of the manufacturing sector following an energy discovery has been termed the "Dutch disease," and has been investigated in many recent studies. Our model extends the principally static analyses to date by allowing for: (1 ) short-run capital specificity and long-run capital mobility; (2) inter- national capital flows; and (3) far-sighted intertemporal optimizing behavior by households and firms. The model is solved by numerical simulation.

A roadmap for China to peak carbon dioxide emissions and achieve a 20% share of non-fossil fuels in primary energy by 2030

As part of its Paris Agreement commitment, China pledged to peak carbon dioxide (CO2) emissions around 2030, striving to peak earlier, and to increase the non-fossil share of primary energy to 20% by 2030. Yet by the end of 2017, China emitted 28% of the world's energy-related CO2 emissions, 76% of which were from coal use. How China can reinvent its energy economy cost-effectively while still achieving its commitments was the focus of a three-year joint research project completed in September 2016. Overall, this analysis found that if China follows a pathway in which it aggressively adopts all cost-effective energy efficiency and CO2 emission reduction technologies while also aggressively moving away from fossil fuels to renewable and other non-fossil resources, it is possible to not only meet its Paris Agreement Nationally Determined Contribution (NDC) commitments, but also to reduce its 2050 CO2 emissions to a level that is 42% below the country's 2010 CO2 emissions. While numerous barriers exist that will need to be addressed through effective policies and programs in order to realize these potential energy use and emissions reductions, there are also significant local environmental (e.g., air quality), national and global environmental (e.g., mitigation of climate change), human health, and other unquantified benefits that will be realized if this pathway is pursued in China

IMACLIM-R: a modelling framework to simulate sustainable development pathways

To assess the sustainability of future development pathways requires models to compute long-run Economy-Energy-Environment scenarios. This paper presents the IMACLIM-R framework, aimed at investigating climate, energy and development inter-related issues. The model was built in an attempt to address three methodological challenges: to incoporate knowledge from economics and engineering sciences, to support the dialogue with and between stakeholders, to produce scenarios with a strong consistency, concerning especially the interplay between development patterns, technology and growth. These goals led to the development of a recursive structure articulating a static general equilibrium framework including innovative features and sectorspecific dynamic modules now concerning energy, transportation and industry. This paper provides the general rationale of the model and the description of all its components.

Technological change in economic models of environmental policy: a survey

This paper provides an overview of the treatment of technological change in economic models of environmental policy. Numerous economic modeling studies have confirmed the sensitivity of mid- and long-run climate change mitigation cost and benefit projections to assumptions about technology costs. In general, technical progress is considered to be a noneconomic, exogenous variable in global climate change modeling. However, there is overwhelming evidence that technological change is not an exogenous variable but to an important degree endogenous, induced by needs and pressures. Hence, some environmenteconomy models treat technological change as endogenous, responding to socio-economic variables. Three main elements in models of technological innovation are: (i) corporate investment in research and development, (ii) spillovers from R&D, and (iii) technology learning, especially learning-by-doing. The incorporation of induced technological change in different types of environmental-economic models tends to reduce the costs of environmental policy, accelerates abatement and may lead to positive spillover and negative leakage. --exogenous technological change,induced technological change,environmenteconomy models

Semantic Compression for Edge-Assisted Systems

A novel semantic approach to data selection and compression is presented for the dynamic adaptation of IoT data processing and transmission within "wireless islands", where a set of sensing devices (sensors) are interconnected through one-hop wireless links to a computational resource via a local access point. The core of the proposed technique is a cooperative framework where local classifiers at the mobile nodes are dynamically crafted and updated based on the current state of the observed system, the global processing objective and the characteristics of the sensors and data streams. The edge processor plays a key role by establishing a link between content and operations within the distributed system. The local classifiers are designed to filter the data streams and provide only the needed information to the global classifier at the edge processor, thus minimizing bandwidth usage. However, the better the accuracy of these local classifiers, the larger the energy necessary to run them at the individual sensors. A formulation of the optimization problem for the dynamic construction of the classifiers under bandwidth and energy constraints is proposed and demonstrated on a synthetic example.Comment: Presented at the Information Theory and Applications Workshop (ITA), February 17, 201