Enlargement of the EU with ten Central and Eastern European Countries is a major item on the EU's policy agenda. Assessing the economic consequences of the accession to the internal market is not obvious. This paper provides a new method to quantify the impact of the accession. The assessment...

WorldScan is a recursively dynamic general equilibrium model for the world economy, developed for the analysis of long-term issues in international economics. The model is used both as a tool to construct long-term scenarios and as an instrument for policy impact assessments, e.g. in the fields...

In services, the activities of foreign affiliates often exceed the value of cross-border trade. A complete analysis of services liberalisation therefore requires the modelling of FDI. This paper presents the treatment of FDI in our CGE model WorldScan based on the ideas of Petri (1997) and...

This paper explores the economic consequences of the enlargement of the European Union with countries from Central and Eastern Europe. We focus on integration aspects that go beyond the reduction of formal trade barriers, namely accession to the internal market and free movement of labour. The...

A simple model of “hourglass†problems is presented. For such problems, the benefit of a national policy measure is propagated to all countries through one single world-wide variable.<span style="font-family: NimbusRomNo9L-Regu; font-size: small;"><span style="font-family: NimbusRomNo9L-Regu; font-size: small;">The prime example is the effect of the reduction of CO</span></span><span style="font-family: NimbusRomNo9L-Regu; font-size: xx-small;"><span style="font-family: NimbusRomNo9L-Regu; font-size: xx-small;">2 </span></span><span style="font-family: NimbusRomNo9L-Regu; font-size: small;"><span style="font-family: NimbusRomNo9L-Regu; font-size: small;">emission on the world climate.</span></span><span style="font-family: NimbusRomNo9L-Regu; font-size: small;"><span style="font-family: NimbusRomNo9L-Regu; font-size: small;">Five </span></span><span style="font-family: NimbusRomNo9L-Regu; font-size: small;"><span style="font-family: NimbusRomNo9L-Regu; font-size: small;">optimal...</span></span>

This paper reviews options of labour market-modelling in a CGE framework. On the labour-supply side, two principal modelling options are distinguished and discussed: aggregated, representative households and microsimulation based on individual household data.On the labour-demand side, we focus...

This paper describes a labour market extension for the CGE model "WorldScan". The labour market module features endogenous labour supply at two margins: participation and hours of work. Involuntary unemployment is captured through a collective bargaining ("right to manage") set-up. The paper...

This paper explores the economic consequences of proposed EU reforms for a common consolidated corporate tax base. The reforms replace separate accounting with formula apportionment as a way to allocate corporate tax bases across countries. To assess the economic implications, we use a...

This article assesses the economic implications of the introduction of consolidation with formula apportionment in the European Union under alternative enhanced cooperation agreements. We find that the consolidation is likely to yield a small aggregate welfare gain in Europe, but that not all...

Using a GTAP CGE application, we assess the main economic results of CAFTA for Central America (CA). Currently, Central America enjoys preferential access to the US market through the Caribbean Basin Initiative (CBI). CAFTA will consolidate and augment these concessions. Meanwhile, the...