Multicriteria Policy Making. Defining Efficient Policies in a General Equilibrium Model

We propose to model policy making as a multicriteria problem and solve it using suitable multicriteria techniques in connection with some structural economic model to represent optimal policy making and to get useful policy recommendations. By using a multiobjective approach combined with a Computable General Equilibrium model, we propose the concept of efficient policy and calculate the set of efficient policies for the Spanish economy in an empirical exercise. This approach allows us to quantify the trade-off between growth and inflation, to measure the efficiency of the actually applied fiscal policy and to get some plausible modifications that could foster policy efficiency in practice.Public Policy, Multicriteria Decision Making, Efficient Frontier, Computable General Equilibrium Model.

Los modelos de equilibrio general aplicado : una revisión de los principales campos de aplicación a nivel internacional

En los últimos años, la modelización de equilibrio general se ha convertido en un área muy fructífera de investigación económica. El objetivo este artículo es presentar las diferentes aplicaciones que los modelos de equilibrio general han tenido desde su aparición a nivel internacional. Incluimos, además, las últimas tendencias en modelización en equilibrio general aplicado, orientadas a la inclusión del medioambiente como uno de los campos de mayor desarrollo.____________________________In recent years, the general equilibrium modelling has become a very active research area in economics. The goal of this paper is to present the contributions of computable general equilibrium models which have been applied at international levels. We also include the last tendencies as environmental analysis in CGE, one of the research fields for this type of modelizations

Analisis comparativo de sectores clave desde una perspectiva regional a traves de matrices de contabilidad social: enfoques alternativos

El objetivo que se plantea en este trabajo es el de identicar los sectores clave y estrategicos para el desarrollo de economas a nivel regional y su comparacion con el paradigma nacional. Para ello, se aplican diversas metodologias complementarias de analisis de sectores clave para las diferentes matrices de contabilidad social, en lugar de las tradicionales tablas input-output. Presentadas estas metodologias, se aplicaran a los casos de: Andalucia y Extremadura, regiones objetivo " en el presente Marco Comunitario de Apoyo; Madrid y Cataluña, regiones con los mayores PIB regionales y fuera de esta clasificacion; y, finalmente, España, de forma que sirva de paradigma o base de referencia para realizar dicho analisis comparativo. Palabras clave: matrices de contabilidad social; modelos de equilibrio general aplicado; tablas input-output; sectores clave. Clasificacion JEL: C67; D57; R15. MSC2010: 93D25.JRC.J.5-Agriculture and Life Sciences in the Econom

Andalusian Economic Structure over Social Accounting Matrices from FES analysis perspective

Over the last 60 years, regional economic analysis has been interested in identifying common patterns and regularities of regional economic structure. The identification of such patterns suggests that there predictable relationships between different levels of structural regional development. Since Social Accounting Matrices (SAM) are database containing the total transactions in an economy, it is possible to use them to comparise the economic structure embedded in them. As regional SAM provide a detailed description of the economic structure, they provide a valid basis for this category of analysis. The aim of this paper is to determine those structural components and similarities in economic relationships within the regional economy (Andalusia) over a determined period of time (1990-2010), specifying the Fundamental Economic Structure (FES), quantifying and classifying their components both individual and holistic sense. The FES methodology applied in this paper is a set of complementary techniques, focused on revealing key components in the overall economy. Quantifying the features of each component will allow us ranking the core and the periphery ot the economic structure. The FES approach provide us those elements of the economy categorized like predictable, stable and important. And the features combination let us to classify the core components of the economy. The results show us the relevance of partitions related to tertiary activities. They have more probabilities to be predicted using a proxy of the size of the economy, specially in Commercial Services, Retail sales and Transport and Communications. Besides, the structure of Andalusian economy is quite stable in comparison with other regional analysis and the stability is focused in tertiary sector and some industrial activities like Electric energy, Chemical and Machinery, Refinning or Mining and Steel. In terms of importance, the connectivity analysis provide that the principal interactions are brought about Retail sales, Transport and Comunications and Other Services located in tertiary-tertiary, secondary-tertiary and primary-tertiary partitions of the economy. There are also important cells in the secondary sector in this sense like Construction, Vehicles or Refining. This type of interactions between secondary and tertiary sectors, and absence of primary activities are the main characteristics of the andalusian economy structure, with no apreciable change over period of analysis. It can be concluded that there is a temporal FES for the regional economy in Andalusia in the period of analysis and under this methodology it is possible to identify not just relevant activities but key flows of interactions in the economy and let to estimate and forecast the cell values of the core of the economy determining the degree of development of the economy

Federalismo fiscal a partir de un modelo de equilibrio general aplicado: Andalucía VS. España

El objetivo de este trabajo es realizar a través de un modelo de equilibrio general computable bi-regional que sigue la doctrina tradicional de equilibrio walrasiano, ampliado con la inclusión del sector público y del sector exterior, y basado en las matrices de contabilidad social de Andalucía y España, elaboradas para el año 1995, estudiar los efectos de cambios tanto en los impuestos -concretamente en el impuesto sobre la renta- , como en el gasto público - y su distribución sectorial-, realizados por Andalucía o por España, bajo la perspectiva del Federalismo Fiscal, sobre ambas economías a nivel de PIB, sectores productivos, precios, recaudaciones impositivas y bienestar social.Federalismo fiscal, modelos de equilibrio general aplicado, impuestos directos, gasto social

Metodología de la Matriz Causal para el análisis del cambio estructural: una aplicación para la economía andaluza

El objetivo de este trabajo es analizar el cambio que se ha producido en la estructura económica de Andalucía entre los años 2000 y 2005, mediante el uso de las matrices de contabilidad social. De los diversos métodos existentes, el enfoque de la matriz causal ha sido el empleado para analizar dicho cambio. El estudio se ha realizado con una matriz con 26 sectores productivos en las que se ha endogeneizado las cuentas de trabajo, capital y consumo. Los resultados obtenidos muestran que los cambios varían de unos sectores a otros y, que la causa de los mismos puede ser debida a la influencia del propio sector, del resto de los sectores o de ambos. . Clasificación JEL: D57, D58, C67.JRC.J.4-Agriculture and Life Sciences in the Econom

Causal matrix approach to structural change analysis: an application to Andalusian economy

El objetivo de este trabajo es analizar el cambio que se ha producido en la estructura económica de Andalucía entre los años 2000 y 2005, mediante el uso de las matrices de contabilidad social. De los diversos métodos existentes, el enfoque de la matriz causal ha sido el empleado para analizar dicho cambio. El estudio se ha realizado con una matriz con 26 sectores productivos en las que se ha endogenizado las cuentas de trabajo, capital y consumo. Los resultados obtenidos muestran que los cambios varían de unos sectores a otros y que la causa de los mismos puede ser debida a la influencia del propio sector, del resto de los sectores o de ambos.The goal of this paper is to study the structural change in the Andalusian economy during the period 2000-2005 using social accounting matrices. Although there are several methods, the causative matrix approach has been used to analyze the above mentioned change. The study has been done using a matrix with 26 productive sectors and three endogenous accounts, labor income, capital income and private consumption. The results show that changes vary from one to another sector and cause of these may be due to influence of own sector, of rest of the sectors or of both

Sensitivity of Simulation Results to Competing SAM Updates

Recently there has been a renewed research interest in the properties of non survey updates of input-output tables and social accounting matrices (SAM). Along with the venerable and well known scaling RAS method, several alternative new procedures related to entropy minimization and other metrics have been suggested, tested and used in the literature. Whether these procedures will eventually substitute or merely complement the RAS approach is still an open question without a definite answer. The performance of many of the updating procedures has been tested using some kind of proximity or closeness measure to a reference input-output table or SAM. The first goal of this paper, in contrast, is the proposal of checking the operational performance of updating mechanisms by way of comparing the simulation results that ensue from adopting alternative databases for calibration of a reference applied general equilibrium model. The second goal is to introduce a new updating procedure based on information retrieval principles. This new procedure is then compared as far as performance is concerned to two well-known updating approaches: RAS and cross-entropy. The rationale for the suggested cross validation is that the driving force for having more up to date databases is to be able to conduct more current, and hopefully more credible, policy analyses

The Price Effects of Indirect Taxation in the Regional Economy of Andalusia

The goal of this paper is to use a regional social accounting matrix (SAM) to empirically study the price burden of indirect taxes in the regional economy of Andalusia, Spain, a developing region located in the south of the Iberian peninsula. The methodology we use is that of the well-known input-output subset of a SAM model. Adopting this approach we are able to capture the existent structural interdependence among productive sectors and we are able to evaluate the implicit weights and price elasticities of the different indirect taxes, as well as indicators of consumer’s welfare variations. The database used in the analysis is the SAMAND95 (Social Accounting Matrix of Andalusia, Spain, for 1995) developed by the authors. The main result of the paper is that taxes on labour use by firms carry the largest price burden of all indirect taxes, hence exerting a constraining role on the regions’ competitiveness

Effects of the Tax on Retail Sales of Some Fuels on a regional economy: a computable general equilibrium approach

This paper simulates the effects on the economy of Extremadura that are produced by a new tax on retail sales of some fuels. A computable general equilibrium model involving various labour market scenarios is employed as a modelling framework. Model parameters are obtained by calibration, using a social accounting matrix for Extremadura updated to the year 2000. Further, we also include an additional simulation in which a hypothetical regional tax rate, to finance environmental policies, is considered. This second simulation assumes constant fiscal revenues. The results of the first simulation show that the effects of this tax are modest. The simulation shows household welfare losses, decreasing activity levels and generalised price reductions, except in production sectors more directly linked to the oil products sector. In addition, we also observe that this hypothetical additional regional fuel tax rate would reinforce the effects produced by the national tax rate.Tax on retail sales of some fuels, computable general equilibrium models, social accounting matrices, fiscal policy.