Transcript NOPOOR Project - Universidad Autónoma de Madrid

NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
COMPUTABLE GENERAL
EQUILIBRIUM MODELS (CGE):
BASICS
Saúl de Vicente Queijeiro
October 21st , 2013
UNIVERSIDAD AUTÓNOMA DE MADRID (UAM)
COMPUTABLE GENERAL EQUILIBRIUM MODELS (CGE)
IMPLEMENTATION OF A CGE MODEL
Data Source: structure of a SAM
Behavioral equations
Market-clearing conditions
SOLVING THE MODEL
Shock simulation
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
COMPUTABLE GENERAL EQUILIBRIUM MODELS (CGE)
DATA SOURCE: SOCIAL ACCOUNTING MATRIX (SAM)
THEORETICAL FRAMEWORK: SIMPLIFIED MODEL
SIMPLIFIED MODEL USING EXCEL
SIMPLIFIED MODEL USING GAMS
THEORETICAL FRAMEWORK: EXTENDED MODEL
EXTENDED MODEL USING GAMS: SIMULATION
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
IMPLEMENTATION OF A CGE MODEL: CGE framework
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
IMPLEMENTATION OF A CGE MODEL: CGE framework-SAM
Structure (source: Breisinger et al, 2009)
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
IMPLEMENTATION OF A CGE MODEL: CGE
framework-SAM Structure
Activities
Activities
Commodities
Labor
Capital
Households
Government
Investment
Rest of world
24,996
Total
24,996
Commodities
12,029
12,142
Labor
9,717
9,717
Capital
3,250
3,250
Households
9,717
Government
3,250
2,372
Total
4,680
1,387
940
Savings
3,272
Rest of world
1,805
860
5,151
2,001
16,354
739
4,052
548
4,680
8,439
24,996
35,807
35,807
8,439
9,717
3,250
16,354
4,052
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
4,680
8,439
CGE THEORETICAL FRAMEWORK: SIMPLIFIED MODEL
•GOODS: BREAD AND WINE
•FACTORS:
•CAPITAL
•LABOUR
•INSTITUTIONS: HOUSEHOLDS
BRD
BRD
WIN
CAP
LAB
HOH
TOTAL
WIN
CAP
LAB
HOH
TOTAL
15
35
5
10
15
20
15
35
25
25
25
25
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
50
15
35
25
25
50
CGE THEORETICAL FRAMEWORK: SIMPLIFIED MODEL
BEHAVIORAL EQUATIONS
HOUSEHOLDS
S.T.
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
CGE THEORETICAL FRAMEWORK: SIMPLIFIED MODEL
BEHAVIORAL EQUATIONS
FIRMS
Max
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
CGE THEORETICAL FRAMEWORK: SIMPLIFIED MODEL
MARKET CLEARING CONDITIONS
Market Equilibrium
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
CGE MODEL USING GAMS/EXCEL: STEPS
DEFINITION OF TABLE NAME AND ITS SUFFICES
LOADING DATA FROM SAM
DECLARING AND FULLFILING PARAMETERS (EXOGENOUS AND INITIAL VALUES OF ENDOGENOUS)
CALIBRATION: Declaring parameters (elasticities and technology state), obtained directly from the
functional forms of the actors' behavior and the SAM. (EXOGENOUS)
MODEL SYSTEM DECLARATION:
DECLARING VARIABLES (ENDOGENOUS)
DECLARING ECUATIONS
CHOSING FUNCTIONAL FORMS OF BEHAVIOR EQUATIONS AND MARKET CLEARING CONDITIONS
OBJECTIVE FUNCTION
INITIALIZING VARIABLES AND SETTING LOWER BOUNDS
SOLVING THE MODEL
SIMULATION
DISPLAYING RESULTS AND BENCHMARKING
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
EXTENDED MODEL: WHAT IS NEW?
•HOUSEHOLDS (DISPOSABLE RENT)
•FIRMS (INTERMEDIATE INPUTS)
•GOVERNMENT (TAXES)
•INVESTMENT (SAVING)
•INTERNATIONAL TRADE
•SMALL COUNTRY ASSUMPTION
•ARMINGTON ASSUMPTION
•MARKET CLEARING CONDITIONS
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
EXTENDED MODEL: GENERAL STRUCTURE
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
CGE THEORETICAL FRAMEWORK: EXTENDED MODEL
•GOODS: BREAD AND WINE
•FACTORS:
•CAPITAL
•LABOUR
•INSTITUTIONS: HOUSEHOLDS, GOVERNMENT(WITH TARIFFS AND INDIRECT TAXES), INVESTMENT
AND REST OF THE WORLD
BRD
WIN
CAP
LAB
HOH
GOV
INV
IDT
TRF
EXT
TOTAL
BRD
21
17
20
15
5
1
13
92
WIN
8
9
30
25
4
2
11
89
CAP
LAB
50
40
50
40
HOH
20
30
GOV
19
14
23
17
2
90
35
INV
16
15
IDT
TRF
9
3
EXT
8
4
12
31
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
9
3
24
TOTAL
92
89
50
40
90
35
31
9
3
24
THEORETICAL FRAMEWORK: EXTENDED MODEL.
BEHAVIORAL EQUATIONS
HOUSEHOLDS
New income constraint:
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
THEORETICAL FRAMEWORK: EXTENDED MODEL.
BEHAVIORAL EQUATIONS
FIRMS: INTERMEDIATE INPUTS
-The bottom stage:
𝑦
𝑦
𝑚𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝜋𝑗 = 𝑝𝑗 𝑦𝑗 −
𝑟ℎ 𝐹ℎ𝑗
ℎ
Subject to;
-The top stage:
𝑚𝑎𝑥𝑖𝑚𝑖𝑧𝑒
𝑦
𝑠
𝜋
=
𝑝
𝑍
−
𝑝
𝑌𝑗 +
𝑗
𝑗
𝑗
𝑗
𝑍𝑗 , 𝑌𝑗 , 𝑋𝑖𝑗
𝑞
𝑝𝑖 𝑋𝑖𝑗
𝑖
Subject to:
𝑍𝑗 = min
𝑋 𝐵𝑟𝑒𝑎𝑑 𝑗 𝑋 𝑊𝑖𝑛𝑒 𝑗 𝑌𝑗
,
,
𝑎𝑥 𝐵𝑟𝑒𝑎𝑑 𝑗 𝑎𝑥 𝑊𝑖𝑛𝑒 𝑗 𝑎𝑦 𝑖
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
THEORETICAL FRAMEWORK: EXTENDED MODEL.
BEHAVIORAL EQUATIONS
INTERMEDIATE INPUTS
𝜋𝑗 : 𝑃𝑟𝑜𝑓𝑖𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑗 − 𝑡ℎ 𝑓𝑖𝑟𝑚 𝑎𝑡 𝑡ℎ𝑒 𝑡𝑜𝑝 𝑠𝑡𝑎𝑔𝑒
𝑦
𝜋𝑗 : 𝑃𝑟𝑜𝑓𝑖𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑗 − 𝑡ℎ 𝑓𝑖𝑟𝑚 𝑎𝑡 𝑡ℎ𝑒 𝑏𝑜𝑡𝑡𝑜𝑚 𝑠𝑡𝑎𝑔𝑒
𝑧𝑗 : 𝑔𝑟𝑜𝑠𝑠 𝑜𝑢𝑡𝑝𝑢𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑗 − 𝑡ℎ 𝑔𝑜𝑜𝑑
𝑥𝑖𝑗 : 𝑖𝑛𝑡𝑒𝑟𝑚𝑒𝑑𝑖𝑎𝑡𝑒 𝑖𝑛𝑝𝑢𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑖 − 𝑡ℎ 𝑔𝑜𝑜𝑑 𝑢𝑠𝑒𝑑 𝑏𝑦 𝑡ℎ𝑒 𝑗 − 𝑡ℎ 𝑓𝑖𝑟𝑚
𝑌𝑗 : 𝑣𝑎𝑙𝑢𝑒 𝑎𝑑𝑑𝑒𝑑 𝑜𝑓 𝑡ℎ𝑒 𝑖 − 𝑡ℎ 𝑓𝑖𝑟𝑚
𝑎𝑥𝑖𝑗 : 𝑐𝑜𝑒𝑓𝑓𝑖𝑐𝑒𝑛𝑡 𝑓𝑜𝑟 𝑚𝑖𝑛𝑛𝑢𝑚 𝑟𝑒𝑞𝑢𝑒𝑟𝑖𝑚𝑒𝑛𝑡𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑖
− 𝑡ℎ 𝑖𝑛𝑡𝑒𝑟𝑚𝑒𝑑𝑖𝑎𝑡𝑒 𝑖𝑛𝑝𝑢𝑡 𝑓𝑜𝑟 𝑜𝑛𝑒 𝑢𝑛𝑖𝑡 𝑜𝑓 𝑔𝑟𝑜𝑠𝑠 𝑜𝑢𝑡𝑝𝑢𝑡
𝑎𝑥𝑖𝑗
= 𝑐𝑜𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑡 𝑓𝑜𝑟 𝑚𝑖𝑛𝑖𝑚𝑢𝑚 𝑟𝑒𝑞𝑢𝑒𝑟𝑖𝑚𝑒𝑛𝑡𝑠 𝑜𝑓 𝑣𝑎𝑙𝑢𝑒 𝑎𝑑𝑑𝑒𝑑 𝑓𝑜𝑟 𝑜𝑛𝑒 𝑢𝑛𝑖𝑡 𝑜𝑓 𝑔𝑟𝑜𝑠𝑠 𝑜𝑢𝑡𝑝𝑢𝑡
𝑝𝑗𝑠 = 𝑠𝑢𝑝𝑝𝑙𝑦 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑗 − 𝑡ℎ 𝑔𝑜𝑜𝑑
𝑞
𝑝𝑖 = 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑖 − 𝑡ℎ 𝑖𝑛𝑡𝑒𝑟𝑚𝑒𝑑𝑎𝑡𝑒 𝑔𝑜𝑜𝑑, 𝑎𝑛𝑑
𝑦
𝑝𝑗 = 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑣𝑎𝑙𝑢𝑒 𝑎𝑑𝑑𝑒𝑑 𝑜𝑓 𝑡ℎ𝑒 𝑗 − 𝑡ℎ 𝑓𝑖𝑟𝑚
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
THEORETICAL FRAMEWORK: EXTENDED MODEL.
BEHAVIORAL EQUATIONS
INTERMEDIATE INPUTS
𝑋𝑖𝑗 = 𝑎𝑥𝑖𝑗 𝑍𝑗 , ∀𝑖
𝑌𝑗 = 𝑎𝑦𝑗 𝑍𝑗 , ∀𝑗
𝑦
𝐹ℎ𝑗 =
𝛽ℎ 𝑗 𝑝 𝑗
𝑟ℎ
𝑌𝑗 , ∀ℎ
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
THEORETICAL FRAMEWORK: EXTENDED MODEL.
BEHAVIORAL EQUATIONS
INTERMEDIATE INPUTS
zero-profit condition:
𝑦
𝜋 = 𝑝𝑗𝑠 𝑍𝑗 − 𝑝𝑗 𝑌𝑗 +
𝑝𝑖 𝑞 𝑋𝑖𝑗
𝑖
𝑦
𝑞
= 𝑝𝑗𝑠 𝑍𝑗 − 𝑎𝑦𝑗 𝑝𝑗 𝑍𝑗 +
𝑎𝑥𝑖𝑗 𝑝𝑖 𝑍𝑗
= 0, ∀𝑗
𝑖
𝑦
𝑞
𝑝𝑗𝑠 = 𝑎𝑦𝑗 𝑝𝑗 +
𝑎𝑥𝑖𝑗 𝑝𝑖 . ∀𝑗
𝑖
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
THEORETICAL FRAMEWORK: EXTENDED MODEL.
BEHAVIORAL EQUATIONS
GOVERNMENT
𝑔
𝑋𝑖 : 𝑝𝑢𝑏𝑙𝑖𝑐 𝑐𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑖 − 𝑡ℎ 𝑐𝑜𝑚𝑜𝑑𝑖𝑡𝑦
𝑇𝑗 : 𝑡𝑎𝑥 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 𝑓𝑟𝑜𝑚 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑗 − 𝑡ℎ 𝑐𝑜𝑚𝑚𝑜𝑑𝑖𝑡𝑦
𝜏𝑗 : 𝑡𝑎𝑥 𝑟𝑎𝑡𝑒 𝑜𝑛 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑗
− 𝑡ℎ 𝑐𝑜𝑚𝑜𝑑𝑖𝑡𝑦 𝑖𝑛 𝑡𝑒𝑟𝑚 𝑜𝑓 𝑙𝑜𝑐𝑎𝑙 𝑐𝑢𝑟𝑟𝑒𝑛𝑐𝑦 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡.
𝑔
𝑆 : 𝑝𝑢𝑏𝑙𝑖𝑐 𝑠𝑎𝑣𝑖𝑛𝑔, 𝑎𝑛𝑑
𝜇𝑖 : 𝑠ℎ𝑎𝑟𝑒 𝑜𝑓 𝑒𝑥𝑝𝑒𝑑𝑖𝑡𝑢𝑟𝑒 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑖
− 𝑡ℎ 𝑐𝑜𝑚𝑜𝑑𝑖𝑡𝑦 0 ≤ 𝜇𝑖 ≤ 1,
𝑖
𝜇𝑖 = 1
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
THEORETICAL FRAMEWORK: EXTENDED MODEL.
BEHAVIORAL EQUATIONS
INVESTMENT
𝑋𝑖𝑣 =
𝜆𝑖
𝑞
𝑝𝑖
𝑆 + 𝑆𝑔 + 𝜀𝑆𝑓 . ∀𝑖
S: private saving
S f : foreign saving or current account deficit in balance of payment in foreign currency
Xiv : investment demand for the i − th comodity
ε: exchange rate (local currency per foreign currency)
λi : share of expediture for the i − th commodity (0 ≤ λi
≤ 1,
i
λi = 1
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
THEORETICAL FRAMEWORK: EXTENDED MODEL.
BEHAVIORAL EQUATIONS
•INTERNATIONAL TRADE: SMALL COUNTRY ASSUMPTION
𝑝𝑖𝑒 = 𝜀𝑝𝑖 𝑊𝑒 , ∀𝑖
𝑝𝑖𝑚 = 𝜀𝑝𝑖 𝑊𝑚 , ∀𝑖
𝑖
𝑝𝑖𝑤𝑒 𝐸𝑖 + 𝑆𝑓 =
𝑤𝑚
𝑀𝑖
𝑖 𝑝𝑖
Balance of payments condition
𝑝𝑖𝑤𝑒 : 𝑒𝑥𝑝𝑜𝑟𝑡𝑠 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑖 − 𝑡ℎ 𝑐𝑜𝑚𝑚𝑜𝑑𝑖𝑡𝑦 𝑖𝑛 𝑓𝑜𝑟𝑒𝑖𝑔𝑛 𝑐𝑢𝑟𝑟𝑒𝑛𝑐𝑦 𝑡𝑒𝑟𝑚𝑠 (𝑒𝑥𝑜𝑔𝑒𝑛𝑜𝑢𝑠)
𝑝𝑖𝑒 = 𝑒𝑥𝑝𝑜𝑟𝑡 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑖 − 𝑡ℎ 𝑐𝑜𝑚𝑚𝑜𝑑𝑖𝑡𝑦 𝑖𝑛 𝑙𝑜𝑐𝑎𝑙 𝑐𝑢𝑟𝑟𝑒𝑛𝑐𝑦 𝑡𝑒𝑟𝑚𝑠,
𝐸𝑖 = 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑒𝑥𝑝𝑜𝑟𝑡 𝑜𝑓 𝑡ℎ𝑒 𝑖 − 𝑡ℎ 𝑐𝑜𝑚𝑚𝑜𝑑𝑖𝑡𝑦
𝑝𝑖𝑤𝑚 = 𝑖𝑚𝑝𝑜𝑟𝑡 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑖 − 𝑡ℎ 𝑐𝑜𝑚𝑚𝑜𝑑𝑖𝑡𝑦 𝑖𝑛 𝑓𝑜𝑟𝑒𝑖𝑔𝑛 𝑐𝑢𝑟𝑟𝑒𝑛𝑐𝑦 𝑡𝑒𝑟𝑚𝑠 (𝑒𝑥𝑜𝑔𝑒𝑛𝑜𝑢𝑠)
𝑝𝑖𝑚 = 𝑖𝑚𝑝𝑜𝑟𝑡 𝑝𝑟𝑖𝑐𝑒 𝑜𝑓 𝑡ℎ𝑒 𝑖 − 𝑡ℎ 𝑐𝑜𝑚𝑚𝑜𝑑𝑖𝑡𝑦 𝑖𝑛 𝑙𝑜𝑐𝑎𝑙 𝑐𝑢𝑟𝑟𝑒𝑛𝑐𝑦 𝑡𝑒𝑟𝑚𝑠, 𝑎𝑛𝑑
𝑀𝑖 = 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑖𝑚𝑝𝑜𝑟𝑡𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑖 − 𝑡ℎ 𝑐𝑜𝑚𝑚𝑜𝑑𝑖𝑡𝑦
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
THEORETICAL FRAMEWORK: EXTENDED MODEL.
BEHAVIORAL EQUATIONS
•INTERNATIONAL TRADE: ARMINGTON ASSUMPTION
𝑚𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑞
𝑞
𝜋𝑖 = 𝑝𝑖 𝑄𝑖 − 𝑝𝑖𝑚 𝑀𝑖 + 𝑝𝑖𝑑 𝐷𝑖
𝑄𝑖 , 𝑀𝑖 , 𝐷𝑖
S. T:
𝑄𝑖 =
𝜂𝑖
𝛾𝑖 𝛿𝑚𝑖 𝑀𝑖
+
1
𝜂𝑖 𝜂𝑖
𝛿𝑑𝑖 𝐷𝑖
1
𝑞 1−𝜂𝑖
𝛾𝑖 𝛿𝑚𝑖 𝑝𝑖
𝑝𝑖𝑚
𝜂𝑖
𝑀𝑖 =
1
𝑞 1−𝜂𝑖
𝛾𝑖 𝛿𝑑𝑖 𝑝𝑖
𝑝𝑖𝑑
𝑄𝑖 , ∀𝑖
𝜂𝑖
𝐷𝑖 =
𝑄𝑖 , ∀𝑖
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
THEORETICAL FRAMEWORK: EXTENDED MODEL.
BEHAVIORAL EQUATIONS
•INTERNATIONAL TRADE: ARMINGTON ASSUMPTION:
𝑚𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑧
𝜋𝑖 = 𝑝𝑖𝑒 𝐸𝑖 + 𝑝𝑖𝑑 𝐷𝑖 − 𝜏𝑖 + 𝑝𝑖𝑠 𝑍𝑖 ,
𝑍, 𝐵, 𝐷
S.T:
𝑍𝑖 = 𝜃𝑖
∅
𝛿𝑒𝑖 𝐸𝑖 𝑖
+
1
∅𝑖 ∅𝑖
𝛿𝑑𝑖 𝐷𝑖
𝐸𝑖 =
𝐷𝑖 =
𝜃𝑖
∅𝑖
𝜃𝑖
∅𝑖
𝛿𝑒𝑖 (𝜏𝑖 +
𝑝𝑖𝑒
𝛿𝑑𝑖 𝜏𝑖 +
𝑝𝑖𝑑
1
𝑠 1−∅𝑖
𝑝𝑖 )
𝑝𝑖𝑠
1
1−∅𝑖
𝑧𝑖 , ∀𝑖
𝑧𝑖 , ∀𝑖
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
THEORETICAL FRAMEWORK: EXTENDED MODEL
•MARKET CLEARING CONDITIONS
𝑝
𝑔
𝑄𝑖 = 𝑋𝑖 + 𝑋𝑖 + 𝑋𝑖𝑣 +
𝑋𝑖𝑗 , ∀𝑖
𝑗
𝐹ℎ𝑗 = 𝐹𝐹ℎ ∀ℎ
𝑗
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
EXTENDED MODEL USING GAMS
•DEFINITION OF TABLE NAME AND ITS SUFFICES
•LOADING DATA FROM SAM:
• 5 COLUMUNS (+)
•IMPORTING DATA FROM A TXT. FILE
• DECLARING AND FULLFILING PARAMETERS
INITIAL VALUES OF ENDOGENOUS )
•VALUE ADDED AND INTERMEDIATE INPUTS
• GOVERNMENT (TAXES)
• S-I
• REST OF THE WORLD
•COMPOSITE GOODS (ARMINGTON)
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
(EXOGENOUS AND
EXTENDED MODEL USING GAMS
•CALIBRATION: DECLARING AND CALCULATING
PARAMETERS (EXOGENOUS)
•SUBSTITUTION ELASTICITIY PARAMETER
•TRANSFORMATION ELASTICITY PARAMETER
•SHARE PARAMETERS (LEONTIEF, CES, CET)
•AVERAGE PROPENSITY FOR SAVING
•TAX RATE
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
EXTENDED MODEL USING GAMS
•DEFINING MODEL SYSTEM
•VARIABLES (ENDOGENOUS)
•EQUATIONS
•HOUSEHOLD CONSUMPTION
•DOMESTIC PRODUCTION: VA, INTERMEDIATE DEMANDCOST
FUNCTION
•GOVERNMENT
•INVESTMENT
•INTERNATIONAL TRADE:
•PRICES
•ARMINGTON AND TRANSFORMATION FUNCTIONS
•MARKET CLEARING CONDITIONS
•SAVINGS: (NUMBER OF VARIABLES=NUMBER OF EQUATIONS)
•OBJECTIVE FUNCTION
•INITIALIZING VARIABLES AND SETTING LOWER BOUNDS
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
EXTENDED MODEL USING GAMS
•SIMULATION
•DIFFERENCES BETWEEN INITIAL EQUILIBRIUM AND COUNTERFACTUAL SOLUTION
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
NOPOOR Project
"Enhancing Knowledge for Renewed Policies against Poverty"
THANK YOU
Saúl de Vicente Queijeiro
October 21st , 2013
UNIVERSIDAD AUTÓNOMA DE MADRID (UAM)