@article{Oyamada:333022,
      recid = {333022},
      author = {Oyamada, Kazuhiko},
      title = {Behavioral Characteristics of MRIO-Based Global AGE Models  with Variable Elasticity of Substitution between Varieties},
      address = {2019},
      year = {2019},
      note = {Presented at the 22nd Annual Conference on Global Economic  Analysis, Warsaw, Poland},
      abstract = {This study explores the behavioral characteristics of an  applied general equilibrium model with the Melitz-type  heterogeneous and Krugman-type homogeneous firms, which  endogenizes substitution elasticity as an increasing  function of the total number of varieties with the  assumption of agent-specific sourcing of imported and  domestically produced commodities. Simulation experiments  with the model revealed that inter-sector and international  spillovers of the effects of smoother substitution through  intermediate transactions among countries/regions amplify  the efficiency-enhancing effect of international trade to  bring significantly large welfare gains to all countries in  the global economy. The production sector, which is assumed  in the model to differentiate outputs under monopolistic  competition, plays an important role as the key agent that  effectively transmits the favorable effect to the global  economy.},
      url = {http://ageconsearch.umn.edu/record/333022},
}