{"title":"Accounting for the Changing Role of Family Income in Determining College Entry","authors":"Christoph Winter","doi":"10.2139/ssrn.1365203","DOIUrl":"https://doi.org/10.2139/ssrn.1365203","url":null,"abstract":"In this paper, I analyze the determinants of college enrolment and the changes in these determinants over time. I propose a quantitative life-cycle model with college enrolment. Altruistic parents provide financial support to their children. Using counterfactual experiments, I find that 24 percent of all households are financially constrained in their college decision. Constraints become more severe over time. I show that my model is consistent with a narrow college enrolment gap between students from rich and poor families, as previously reported in the empirical literature. The estimation of enrolment gaps is a popular reduced-form approach for measuring the fraction of constrained households. My results suggest that these reduced-form estimates are misleading, and that a structural model of parental transfers is needed to correctly identify constrained households. Further, I show that parental transfers are an important driver behind the changing role of family income as a determinant of college entry, a fact that is well documented for the US economy.","PeriodicalId":308196,"journal":{"name":"ERN: Computable & Other Applied General Equilibrium Models (Topic)","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125322969","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Rethinking Tax Competition Based on Endogenous Equilibrium","authors":"Yang Chen, Weihong Huang","doi":"10.2139/ssrn.1437540","DOIUrl":"https://doi.org/10.2139/ssrn.1437540","url":null,"abstract":"Based on Dixit-Stiglitz framework of exogenous equilibrium, the basic tax competition model is developed introducing agglomeration forces. However, the short-run dynamic micro-foundation to reach such equilibrium has long been ignored in the new economic-geography tax competition literature. In this paper, we uncover the black box and explain the supply dynamics behind the market equilibrium. It is shown that the long-run market clearing condition can be endogenously realized due to individual firm's dynamic optimization behavior. Within this endogenous equilibrium context, we cast new insights on the relationship between trade integration and international tax competition assuming asymmetric factor distribution. Besides, the tax race is argued on the industry level concerning different market structures.","PeriodicalId":308196,"journal":{"name":"ERN: Computable & Other Applied General Equilibrium Models (Topic)","volume":"89 10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132622370","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"House Price Fluctuations and Residential Sorting","authors":"Markus Haavio, Heikki Kauppi","doi":"10.2139/ssrn.1429334","DOIUrl":"https://doi.org/10.2139/ssrn.1429334","url":null,"abstract":"Empirical evidence suggests that local jurisdictions are internally more heterogeneous than standard sorting models predict. We develop a dynamic multi-region model, with fluctuating regional house prices, where an owner-occupying household’s location choice depends on its current wealth and its current ‘match’ and involves both consumption and investment considerations. The relative weights of the consumption and investment motives in the location choice determine the equilibrium pattern of residential sorting, with a strong investment (consumption) motive implying sorting according to match (wealth). The model predicts a negative relation between size of house price fluctuations and residential sorting in the match dimension. Also movers should be more sorted than stayers. These predictions are consistent with evidence from US metropolitan areas when income, age and education are used as proxies for the match.","PeriodicalId":308196,"journal":{"name":"ERN: Computable & Other Applied General Equilibrium Models (Topic)","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124296149","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"General Equilibrium Analysis of Production and Increasing Returns","authors":"Takashi Suzuki","doi":"10.1142/6953","DOIUrl":"https://doi.org/10.1142/6953","url":null,"abstract":"The scope of the general equilibrium (GE) theory has so far been limited to the Walrasian tradition. Indeed, the theories of competitive equilibria and the core are nothing but the modern mathematical analysis of the economic ideas due to Walras, Edgeworth and Pareto. Consequently, recent books in this field are inclined to be heavily technical and mathematical. On the other hand, the modern GE theory has not completed the study of increasing returns and monopolistic competition, which belong to the alternative important stream of economic thought, namely the Marshallian tradition. This book aims to fill this gap, by proving the existence of a competitive equilibrium with increasing returns coming from externalities in a dynamic economy and a monopolistically competitive equilibrium with the technologies exhibiting increasing returns coming from a large set-up cost. Also intended as a basic graduate textbook on GE theory, it contains all the basic results and mathematical techniques in this field, such as measure theory, manifold theory and Banach space theory. A unique feature of the book compared to classical monographs on GE is its emphasis on the historical nature of the subject, and not only the mathematical nature. Students are expected to learn that those mathematically formidable techniques are indeed necessary for tackling many economic problems which have been significant not only in the mathematical or technical context, but also in the historical and traditional context.","PeriodicalId":308196,"journal":{"name":"ERN: Computable & Other Applied General Equilibrium Models (Topic)","volume":"56 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-06-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116133180","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Limited Arbitrage is Necessary and Sufficient for the Existence of an Equilibrium","authors":"G. Chichilnisky","doi":"10.2139/ssrn.1375434","DOIUrl":"https://doi.org/10.2139/ssrn.1375434","url":null,"abstract":"In Chichilnisky (Working Paper No. 586, 1991), Chichilnisky (Working Paper No. 650, 1992) and Chichilnisky (Economic Theory, 1995, 5, 79-108), I introduced the concept of a global cone and used it to define a condition on endowments and preferences, 'limited arbitrage', which 1 showed to be necessary and sufficient for the existence of a competitive equilibrium. In response to a comment (Monteiro et al., Journal of Mathematical Economics, 1997, 26, 000-000), I show here that the authors misunderstood my results by focusing on brief announcements which cover other areas, social choice (Chichilnisky, American Economic Review, 1994, 427-434 and algebraic topology (Chichilnisky, Bulletin of the American Mathematical Society, 1993, 29, 189-207), rather than on the publication which contains my proofs on equilibrium. The comment's example is irrelevant to my results in Chichilnisky (Economic Theory, 1995, 5, 79-108) because it starts from different conditions. Limited arbitrage is always necessary and sufficient for the existence of a competitive equilibrium, with or without short sales, with the global cones as I defined them, and exactly as proved in Chichilnisky (Economic Theory, 1995. 5, 79-108).","PeriodicalId":308196,"journal":{"name":"ERN: Computable & Other Applied General Equilibrium Models (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131266415","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Energy-Capital Substitution: A General Equilibrium Analysis","authors":"G. Chichilnisky","doi":"10.2139/ssrn.1374615","DOIUrl":"https://doi.org/10.2139/ssrn.1374615","url":null,"abstract":"We consider an economy which imports energy from a monopolistic price-setter. The domestic general equilibrium of this economy adjusts in response to the price of energy. We define the total cross price elasticity of demand between energy and capital as the cross price elasticity across general equilibria of the economy, as the equilibrium changes in response to energy price changes. This corresponds to the price elasticity given by a total demand curve, and incorporates adjustments on both supply and demand sides. It is shown that whether this total elasticity implies energy-capital complementarity or substitutability depends upon the parameters of the model and the price of energy: for a given model, there may be a change from substitutability to complementarity as the price of energy rises. This framework offers an additional way of reconciling apparently conflicting findings on energy-capital complementarity and substitutability: an earlier suggestion was made by Berndt and Wood (1979). It is a natural extension of the general equilibrium approach initiated by Hogan (1977).","PeriodicalId":308196,"journal":{"name":"ERN: Computable & Other Applied General Equilibrium Models (Topic)","volume":"77 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121283998","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}