Accounting for Household Heterogeneity in General Equilibrium Models

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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/13328 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/13328 http://eprints.org/relation/isCoversheetVersionOf https://pure.iiasa.ac.at/id/document/13328 archive 351 disk0/00/00/91/05 2016-01-15 08:43:20 2021-08-27 17:21:05 2016-01-15 08:43:20 monograph show 2 Melnikov N.B. 8103 O'Neill B.C. 7542 Dalton M.G. Accounting for Household Heterogeneity in General Equilibrium Models pub iis_mod prog_pcc The paper investigates differences in total consumption and demand according to how heterogeneity is incorporated into the model of the general equilibrium type. The sensitivity analysis for a static case with CES utilities and production functions demonstrates that the relative differences in total consumption can be considerable when a model with several heterogeneous consumer groups is compared to the one with a representative consumer. In a dynamic model, investment is proved to depend both on the production and consumption sides even in the case with one-sector production. By using the first-order optimality conditions to the multi-sector case it is shown that a model has enough capability to represent household heterogeneity to be applied for integrated assessment of carbon cycle emissions and energy demand. 2009-12 published IR-09-051 IR-09-051 1446 1492 public interim_report IIASA, Laxenburg, Austria 26 FALSE info:eu-repo/semantics/book