Showing papers by "Erinç Yeldan published in 1998"

A simple dynamic applied general equilibrium model of a small open economy: transitional dynamics and trade policy

Abstract: A dynamic general equilibrium model of a small open economy is presented to investigate the transition properties of out-of-steady state growth paths in response to trade policy shocks. With the application of the so-called Armingtonian commodity system of static CGE models, we quantify the nature of the transition path and the convergence speed towards the respective steady state under alternative parametrization of the substitution elasticities and of trade policy instruments.

How Fiscal (Mis)-Management May Impede Trade Reform: Lessons From an Intertemporal, Multi-Sector General Equilibrium Model for Turkey

Abstract: We utilize a multi-sector general equilibrium model based on intertemporally optimizing agents to study issues of trade liberalization and fiscal adjustments in the context of the Turkish economy. A key feature of the model is its explicit recognition of the distortionary consequences of excessive borrowing requirements of the public sector through increased domestic interest costs. The model results suggest that the postponement of adjustment to growing public debt and fiscal imbalances could be detrimental; and that in the absence of coordinated fiscal reforms, the welfare gains expected from trade liberalization may significantly be negated.