Geodesic
Consumer aggregation in dynamic general equlibrium models with CES utility functions
Trudy Instituta matematiki i mehaniki, Trudy Instituta Matematiki i Mekhaniki UrO RAN, Tome 16 (2010) no. 5, pp. 289-296
Cet article a éte moissonné depuis la source Math-Net.Ru

Voir la notice du chapitre de livre

Exact aggregation of heterogeneous consumers into one representative consumer with the same total consumption is known to be possible only under fairly restrictive assumptions on the structure of the general equilibrium model. In the dynamic model with the Cobb–Douglas utility and production functions, we obtain exact formulas for the preference parameters of the aggregate utility. For models with arbitrary constant elasticity of substitution utility (CES) functions, we extend the conventional approach of calibrating the CES utility to the benchmark data by taking into account time-variations in consumers' preference parameters.
Keywords: Negishi approach, dynamic programming, computable general equilibrium models. 
@article{TIMM_2010_16_5_a32,
     author = {N. B. Melnikov and B. C. O'Neill and M. G. Dalton},
     title = {Consumer aggregation in dynamic general equlibrium models with {CES} utility functions},
     journal = {Trudy Instituta matematiki i mehaniki},
     pages = {289--296},
     year = {2010},
     volume = {16},
     number = {5},
     language = {en},
     url = {http://geodesic.mathdoc.fr/item/TIMM_2010_16_5_a32/}
}
TY  - JOUR
AU  - N. B. Melnikov
AU  - B. C. O'Neill
AU  - M. G. Dalton
TI  - Consumer aggregation in dynamic general equlibrium models with CES utility functions
JO  - Trudy Instituta matematiki i mehaniki
PY  - 2010
SP  - 289
EP  - 296
VL  - 16
IS  - 5
UR  - http://geodesic.mathdoc.fr/item/TIMM_2010_16_5_a32/
LA  - en
ID  - TIMM_2010_16_5_a32
ER  - 
%0 Journal Article
%A N. B. Melnikov
%A B. C. O'Neill
%A M. G. Dalton
%T Consumer aggregation in dynamic general equlibrium models with CES utility functions
%J Trudy Instituta matematiki i mehaniki
%D 2010
%P 289-296
%V 16
%N 5
%U http://geodesic.mathdoc.fr/item/TIMM_2010_16_5_a32/
%G en
%F TIMM_2010_16_5_a32
N. B. Melnikov; B. C. O'Neill; M. G. Dalton. Consumer aggregation in dynamic general equlibrium models with CES utility functions. Trudy Instituta matematiki i mehaniki, Trudy Instituta Matematiki i Mekhaniki UrO RAN, Tome 16 (2010) no. 5, pp. 289-296. http://geodesic.mathdoc.fr/item/TIMM_2010_16_5_a32/

[1] Dalton M., O'Neill B., Prskawetz A., Jiang L., Pitkin J., “Population aging and future carbon emissions in the United States”, Energy economics, 30 (2008), 642–675 | DOI

[2] Kehoe T. J., Levine D. K., Romer E. M., “Determinacy of equilibria in dynamic models with finitely many consumers”, Journal of Economic Theory, 50 (1990), 1–21 | DOI | MR | Zbl

[3] Kehoe T., “Computation and multiplicity of equilibria”, Handbook of Mathematical Economics, v. IV, eds. Hildenbrand W., Sonnenschein H., North-Holland, Amsterdam, 1991, Ch. 38, 2049–2144 | MR

[4] Creedy J., Guest R., “Population ageing and intertemporal consumption: representative agent versus social planner”, Economic Modelling, 25 (2008), 485–498 | DOI

[5] Dalton M., Goulder L., An intertemporal general equilibrium model for analyzing global interactions between population, the environment and technology: PET model structure and data, Unpublished document, California State University Monterey Bay, 2001, 26 pp.

[6] Melnikov N. B., O'Neill B. C., Dalton M. G., “Accounting for the household heterogeneity in dynamic general equilibrium models”, J. Econ. Dynamics and Control, 2010, submitted

[7] Varian H. R., Microeconomic Analysis, 3rd edn., WW Norton, New York, 1992

[8] Stokey N. L., Lucas R., Prescott E. C., Recursive Methods in Economic Dynamics, Harvard University Press, Cambridge, MA, 1989 | MR | Zbl

[9] Melnikov N. B., O'Neill B. C., Dalton M. G., Accounting for the household heterogeneity in the general equilibrium models, IR-09-051, IIASA, Laxenburg, 2009