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Introducing Roy-like Worker Assignment into Computable General Equilibrium Models

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  • Jaewon Jung

    (Université de Cergy-Pontoise, THEMA)

Abstract

This paper develops a new CGE model incorporating a Roy-like worker assignment in which heterogeneous workers endogenously sort into different technologies based on their comparative advantage. The model predicts significantly higher welfare-improving effects of trade liberalization due to technology-upgrading mechanism.

Suggested Citation

  • Jaewon Jung, 2018. "Introducing Roy-like Worker Assignment into Computable General Equilibrium Models," Thema Working Papers 2018-06, THEMA (Théorie Economique, Modélisation et Applications), CY Cergy-Paris University, ESSEC and CNRS.
    • Handle: RePEc:ema:worpap:2018-06
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    References listed on IDEAS

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    1. Feenstra, Robert C. & Gopinath, Munisamy, 2010. "Chapter 7: The Gains From International Trade Under Monopolistic Competition," 2010: Trade in Agriculture: Much Done, So Much More to Do, December 2010, Berkeley, California 184023, International Agricultural Trade Research Consortium.
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    8. Jaewon Jung, 2015. "Technology, Skill, and Growth in a Global Economy," Thema Working Papers 2015-08, THEMA (Théorie Economique, Modélisation et Applications), CY Cergy-Paris University, ESSEC and CNRS.
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    Keywords

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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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