Factor Markets in General Computable Equilibrium Models

M. Banse, A. Rothe, L.J. Shutes, J.C.M. van Meijl, A.A. Tabeau, G.B. Woltjer, Peter Dixon, Maureen Rimmer

Research output: Book/ReportReportAcademic

Abstract

One objective of Computable general equilibrium (CGE) models is the analysis of economywide
effects of policy measures. The focus of the Factor Markets project is to analyse the
functioning of factor markets for agriculture in the EU-27, including the Candidate
Countries. While agricultural and food markets are fully integrated in a European single
market, subject to an EU-wide common policy, the Common Agricultural Policy (CAP), this is
not the case for the agricultural factor markets capital, labour and land. There are partly
serious differences with regard to member state regulations and institutions affecting land,
labour and capital markets. The presentation of this heterogeneity of factor markets amongst
EU Member States have been implemented in the CGE models to improve model-based
analyses of the CAP and other policy measures affecting agricultural production.
This final report comprises the outcome of a systematic extension and improvement of the
Modular Applied GeNeral Equilibrium Tool (MAGNET) model starting from an overview of
the current state of the art to represent factor markets in CGE models to a description of
work on labour, land and capital in MAGNET.
Original languageEnglish
PublisherCEPS
Number of pages64
Publication statusPublished - 2013

Publication series

NameWorking Paper Factor Markets
No.47

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Cite this

Banse, M., Rothe, A., Shutes, L. J., van Meijl, J. C. M., Tabeau, A. A., Woltjer, G. B., ... Rimmer, M. (2013). Factor Markets in General Computable Equilibrium Models. (Working Paper Factor Markets; No. 47). CEPS.