General Equilibrium Model for the Japanese Economy with Monopolistic Competitionunder Increasing Return to Scale(in Japanese)

Hirofumi Kawasaki and Kanemi Ban

ESRI Discussion paper series from Economic and Social Research Institute (ESRI)

Abstract: In this paper, a new applied general equilibrium model is presented, where monopolistic competition under the economy of increasing return to scale is explicitly implemented. The equilibrium data sets are compiled from the 2000 Input-Output Tables released in 2004. Implementing monopolistic competition under the economy of increasing return to scale will contribute to evaluate the impact of regulatory reforms on the economy. Simulation results are illustrated in order to to evaluate regulatory reforms such as entry and quit regulation and markup regulations on the industrial structure and macro economic welfare. Other simulation results are also illustrated in order to evaluate the impact of introducing carbon tax or tax reforms for reducing government deficit on the economy.

Pages: 45 pages
Date: 2005-06
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