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Grid Super-Computable General Equilibrium Models

Grid Super-Computable General Equilibrium Models

Joe Kelley
Copyright: © 2012 |Pages: 62
ISBN13: 9781613501627|ISBN10: 1613501625|EISBN13: 9781613501634
DOI: 10.4018/978-1-61350-162-7.ch009
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MLA

Kelley, Joe. "Grid Super-Computable General Equilibrium Models." Information Systems for Global Financial Markets: Emerging Developments and Effects, edited by Alexander Y. Yap, IGI Global, 2012, pp. 177-238. https://doi.org/10.4018/978-1-61350-162-7.ch009

APA

Kelley, J. (2012). Grid Super-Computable General Equilibrium Models. In A. Yap (Ed.), Information Systems for Global Financial Markets: Emerging Developments and Effects (pp. 177-238). IGI Global. https://doi.org/10.4018/978-1-61350-162-7.ch009

Chicago

Kelley, Joe. "Grid Super-Computable General Equilibrium Models." In Information Systems for Global Financial Markets: Emerging Developments and Effects, edited by Alexander Y. Yap, 177-238. Hershey, PA: IGI Global, 2012. https://doi.org/10.4018/978-1-61350-162-7.ch009

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Abstract

We sketch a large-scale computable general equilibrium model of the macroeconomy that includes modern features such as financial derivatives. This model can be used to examine proposed new economic policies that involve large structural changes in the economy. To simulate and study the model, considerable computational power is required for extensive Monte Carlo simulations. We propose using a grid supercomputer to do these Monte Carlo simulations so that the results can be obtained in a reasonable amount of time. To evaluate the new policy, the supercomputer will run two sets of Monte Carlo simulations: (1) Baseline (2) Supercharged. Both sets contain trillions of stochastic simulations. After running both the baseline and supercharged simulations, the social welfare in the two possible scenarios can be compared to see if economic welfare was improved by the proposed supercharged economic policy.

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