COMPUTABLE GENERAL EQUILIBRIUM MODELS (CGE): BASICS

1. 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)

2. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" COMPUTABLE GENERAL EQUILIBRIUM MODELS (CGE)

3. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" COMPUTABLE GENERAL EQUILIBRIUM MODELS (CGE)

4. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" IMPLEMENTATION OF A CGE MODEL: CGE framework

5. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" IMPLEMENTATION OF A CGE MODEL: CGE framework-SAM Structure (source: Breisinger et al, 2009)

6. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" IMPLEMENTATION OF A CGE MODEL: CGE framework-SAM Structure

7. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" CGE THEORETICAL FRAMEWORK: SIMPLIFIED MODEL GOODS: BREAD AND WINE FACTORS: CAPITAL LABOUR INSTITUTIONS: HOUSEHOLDS

8. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" HOUSEHOLDS CGE THEORETICAL FRAMEWORK: SIMPLIFIED MODEL BEHAVIORAL EQUATIONS S.T.

9. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" FIRMS Max CGE THEORETICAL FRAMEWORK: SIMPLIFIED MODEL BEHAVIORAL EQUATIONS

10. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" MarketEquilibrium CGE THEORETICAL FRAMEWORK: SIMPLIFIED MODEL MARKET CLEARING CONDITIONS

11. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" CGE MODEL USING GAMS/EXCEL: STEPS

12. 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

13. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" EXTENDED MODEL: GENERAL STRUCTURE

14. 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

15. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" THEORETICAL FRAMEWORK: EXTENDED MODEL. BEHAVIORAL EQUATIONS HOUSEHOLDS New income constraint:

16. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" THEORETICAL FRAMEWORK: EXTENDED MODEL. BEHAVIORAL EQUATIONS FIRMS: INTERMEDIATE INPUTS

17. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" THEORETICAL FRAMEWORK: EXTENDED MODEL. BEHAVIORAL EQUATIONS INTERMEDIATE INPUTS

18. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" THEORETICAL FRAMEWORK: EXTENDED MODEL. BEHAVIORAL EQUATIONS INTERMEDIATE INPUTS

19. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" THEORETICAL FRAMEWORK: EXTENDED MODEL. BEHAVIORAL EQUATIONS INTERMEDIATE INPUTS

20. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" THEORETICAL FRAMEWORK: EXTENDED MODEL. BEHAVIORAL EQUATIONS GOVERNMENT

21. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" THEORETICAL FRAMEWORK: EXTENDED MODEL. BEHAVIORAL EQUATIONS INVESTMENT

22. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" THEORETICAL FRAMEWORK: EXTENDED MODEL. BEHAVIORAL EQUATIONS INTERNATIONAL TRADE:SMALL COUNTRY ASSUMPTION

23. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" THEORETICAL FRAMEWORK: EXTENDED MODEL. BEHAVIORAL EQUATIONS INTERNATIONAL TRADE:ARMINGTON ASSUMPTION

24. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" THEORETICAL FRAMEWORK: EXTENDED MODEL. BEHAVIORAL EQUATIONS INTERNATIONAL TRADE:ARMINGTON ASSUMPTION:

25. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" THEORETICAL FRAMEWORK: EXTENDED MODEL MARKET CLEARING CONDITIONS

26. 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 (EXOGENOUS AND INITIAL VALUES OF ENDOGENOUS ) VALUE ADDED AND INTERMEDIATE INPUTS GOVERNMENT (TAXES) S-I REST OF THE WORLD COMPOSITE GOODS (ARMINGTON)

27. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" 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

28. 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

29. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" EXTENDED MODEL USING GAMS SIMULATION DIFFERENCES BETWEEN INITIAL EQUILIBRIUM AND COUNTER-FACTUAL SOLUTION

30. NOPOOR Project "Enhancing Knowledge for Renewed Policies against Poverty" THANK YOU Saúl de Vicente Queijeiro October 21st , 2013 UNIVERSIDAD AUTÓNOMA DE MADRID (UAM)