Abstract
This thesis contains three chapters of general equilibrium analysis of economic policy
in Thailand, which can be summarized as follows:
The first chapter is the static general equilibrium analysis of the impacts of oil prices
shock and government subsidies. The results show that oil prices shock in 2004 lowers the
GDP of the Thai economy by 0.14 percent and household welfare by Baht 26.67 billion (0.57
percent of GDP). The negative impact of oil prices shock on GDP can be alleviated by
government subsidies while the negative impact on household welfare can be mitigated only
when the cost of subsidies is financed by (i) the contraction of government consumption and
(ii) the contraction of government consumption together with uniform direct tax rates
increase. Nevertheless, subsidies policy is a regressive measure for income distribution.