Working Papers

The WNE Working Papers series has been published by the Faculty of Economic Sciences at the University of Warsaw since 2008.

The WNE Working Papers series provides a fast, open channel for disseminating research conducted at the Faculty of Economic Sciences, University of Warsaw. The papers hosted here are working versions (pre-prints) and may evolve as authors refine their analyses, incorporate feedback, or progress through formal peer-review. What you read is the current version released by the authors, timestamped and assigned DOI/ISSN identifiers to ensure precise citation and version tracking. Copyright remains with the authors, who may, at any time, upload a revised file or add a note directing readers to a later, peer-reviewed publication.

The Working Papers series accepts articles by research employees of the Faculty and publications from conferences organised at the Faculty of Economic Sciences at the University of Warsaw. Articles should be original research papers which have not been previously published, on the subject of economics.

Please send your paper by e-mail: 8e^QoJ+4Luw]@\t#H{h}'CqA[Ng]#[0UQ9Y5n!*f]P0slt**^u1!V3d?T 

Please send 2 files:

(1) the main text without the title of the article and the authors (DOC/DOCX file) and

(2) the title page including: the title of the paper, the authors and their affiliation (DOC/DOCX file).

Please read the detailed editing requirements before submitting your text. 

Number of Results 3

WP(4/2014)121. Economic modeling approaches: optimization versus equilibrium

Authors: Kiuila Olga, Rutherford Thomas F.
The paper discusses three general classes of nonlinear programming models. Our objective is to show how to represent optimization problem, such as nonlinear programs, in a compact format using extended mathematical programming. This is a useful tool,…

WP121. Economic modeling approaches: optimization versus equilibrium

The paper discusses three general classes of nonlinear programming models. Our objective is to show how to represent optimization problem, such as nonlinear programs, in a compact format using extended mathematical programming. This is a useful tool, especially in cases when complementarity representation, such as mixed complementarity problems, could be difficult to apply. We reflect on the special features of the abstract neoclassical growth model with infinite horizon and illustrate four distinct approaches to computing equilibrium transition paths. The relationship between optimization and equilibrium modeling is explored. We conclude with a test of a new model representation (extended mathematical programming) using two common general equilibrium studies in the literature: Ramsey and Negishi. The new framework allows to define complementarity problems for a model formulated as an optimization problem, thus the resulting model becomes in fact a complementarity problem.


Kiuila Olga, Rutherford Thomas F.
nonlinear programming complementarity programming extended mathematical programming computable general equilibrium modeling infinite horizon

WP(26/2011)66. The cost of reducing CO2 emissions: Integrating abatement technologies into economic modeling

Authors: Kiuila Olga, Rutherford Thomas F.
We explore two methods of incorporating bottom-up abatement cost estimates into top-down modeling: economy-wide and sector-specific. Carbon emissions depend basically on technology and scale. Given the technology options, abatement is possible withou…

WP66. The cost of reducing CO2 emissions: Integrating abatement technologies into economic modeling

We explore two methods of incorporating bottom-up abatement cost estimates into top-down modeling: economy-wide and sector-specific. Carbon emissions depend basically on technology and scale. Given the technology options, abatement is possible without a substantial reduction in scale. Otherwise the change must come purely through a reduction in demand. Our analysis shows that the cost of environmental policy is considerably overestimated by top-down models if a bottom-up abatement cost curve is not included. Using the data for the Swiss economy, we demonstrate two techniques of representing abatement function explicitly in a computable general equilibrium model: a traditional and a hybrid (discrete technology modeling) approaches. The results suggest that the current climate policy in Switzerland will not be able to move the economy towards the required 10% CO2 reduction. Both approaches provide virtually the same results when calibration process is precisely executed, which contradicts the results in previous studies.


Kiuila Olga, Rutherford Thomas F.
cost curve elasticity of substitution computable general equilibrium model hybrid modeling carbon tax

WP(16/2011)56. Interactions between trade and environmental policies in the Czech economy

Authors: Kiuila Olga
Pollution charges are directly applied on exported and domestic, but not imported commodities. We investigate how environmental taxation affects foreign trade in the Czech Republic. Using computable general equilibrium modeling with bottom-up approac…

WP56. Interactions between trade and environmental policies in the Czech economy

Pollution charges are directly applied on exported and domestic, but not imported commodities. We investigate how environmental taxation affects foreign trade in the Czech Republic. Using computable general equilibrium modeling with bottom-up approach, we consider a small-open economy with endogenous unemployment, fixed exchange rate, ten types of taxes and six air-pollutants. Emission reduction is possible through substitution with less polluting inputs, a reduction of output, or abatement. The results show that the imports should not be affected, except coal and electricity. Exports will increase in the light and the biomass industries. The overall effect on the trade balance is slightly negative.


Kiuila Olga
calibration competitiveness computable general equilibrium modeling pollutions taxes
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