A dynamic computable general equilibrium model with working capital for Honduras

In this paper we develop a dynamic real-financial computable general equilibrium (CGE) model for Honduras that incorporates working capital. The model is designed to be useful as a development tool and to be used by policymakers who deal with short-run macro and trade issues. Our model extends previ...

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Autores principales: Morley, Samuel, Piñeiro, Valeria, Robinson, Sherman
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2011
Materias:
Acceso en línea:https://hdl.handle.net/10568/153413
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author Morley, Samuel
Piñeiro, Valeria
Robinson, Sherman
author_browse Morley, Samuel
Piñeiro, Valeria
Robinson, Sherman
author_facet Morley, Samuel
Piñeiro, Valeria
Robinson, Sherman
author_sort Morley, Samuel
collection Repository of Agricultural Research Outputs (CGSpace)
description In this paper we develop a dynamic real-financial computable general equilibrium (CGE) model for Honduras that incorporates working capital. The model is designed to be useful as a development tool and to be used by policymakers who deal with short-run macro and trade issues. Our model extends previous modeling work on Honduras in several ways. First, it uses a new, updated social accounting matrix (SAM) for the country. Second, it is a recursive dynamic model that incorporates unemployment of labor in the short run. Most CGE models are not useful for short-run analysis because they are comparative static models that assume full employment. We specify a fixed minimum wage and an informal sector and use a recursive dynamic framework to solve for the short-run adjustment process that occurs as the economy responds to shocks. Finally, the model introduces working capital as an additional factor of production, complementary to physical capital, which allows us to examine the impact of monetary shocks that affect the supply of credit on the balance of payments, employment, and real income during periods of adjustment.
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spelling CGSpace1534132025-11-06T05:41:34Z A dynamic computable general equilibrium model with working capital for Honduras Morley, Samuel Piñeiro, Valeria Robinson, Sherman computable general equilibrium models economic growth working capital In this paper we develop a dynamic real-financial computable general equilibrium (CGE) model for Honduras that incorporates working capital. The model is designed to be useful as a development tool and to be used by policymakers who deal with short-run macro and trade issues. Our model extends previous modeling work on Honduras in several ways. First, it uses a new, updated social accounting matrix (SAM) for the country. Second, it is a recursive dynamic model that incorporates unemployment of labor in the short run. Most CGE models are not useful for short-run analysis because they are comparative static models that assume full employment. We specify a fixed minimum wage and an informal sector and use a recursive dynamic framework to solve for the short-run adjustment process that occurs as the economy responds to shocks. Finally, the model introduces working capital as an additional factor of production, complementary to physical capital, which allows us to examine the impact of monetary shocks that affect the supply of credit on the balance of payments, employment, and real income during periods of adjustment. 2011 2024-10-01T13:56:07Z 2024-10-01T13:56:07Z Working Paper https://hdl.handle.net/10568/153413 en https://hdl.handle.net/10568/161751 https://hdl.handle.net/10568/160377 Open Access application/pdf International Food Policy Research Institute Morley, Samuel; Piñeiro, Valeria; Robinson, Sherman. 2011. A dynamic computable general equilibrium model with working capital for Honduras. IFPRI Discussion Paper 1130. https://hdl.handle.net/10568/153413
spellingShingle computable general equilibrium models
economic growth
working capital
Morley, Samuel
Piñeiro, Valeria
Robinson, Sherman
A dynamic computable general equilibrium model with working capital for Honduras
title A dynamic computable general equilibrium model with working capital for Honduras
title_full A dynamic computable general equilibrium model with working capital for Honduras
title_fullStr A dynamic computable general equilibrium model with working capital for Honduras
title_full_unstemmed A dynamic computable general equilibrium model with working capital for Honduras
title_short A dynamic computable general equilibrium model with working capital for Honduras
title_sort dynamic computable general equilibrium model with working capital for honduras
topic computable general equilibrium models
economic growth
working capital
url https://hdl.handle.net/10568/153413
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AT morleysamuel dynamiccomputablegeneralequilibriummodelwithworkingcapitalforhonduras
AT pineirovaleria dynamiccomputablegeneralequilibriummodelwithworkingcapitalforhonduras
AT robinsonsherman dynamiccomputablegeneralequilibriummodelwithworkingcapitalforhonduras