Elements of a CGE Model. Self-Assessment. How to Do the Self-Assessment. View the presentation as a slide show. Move your cursor over the bottom left corner of the page to display navigation buttons. Follow the instructions to select or write your answers.
The model calibration procedure calculates the shift and share parameters of supply and demand equations so that, with the given elasticities, the equations replicate the balanced, base year data.
include sales taxes.
include import tariff charges.
include trade and transport margins.
exclude trade and transport margins.
describes factors’ willingness to change employment as relative wages change across industries.
describes the supply side of factor markets.
affects industries’ shares in the employment of a factor.
All of the above.
production decisions about inputs and output levels, which determine the aggregate level of economic output.
the modeler’s identification of all of the variables in the model that are exogenous.
whether aggregate factor supplies are assumed to be fixed or endogenous.
which of the two variables – savings or investment – will adjust to maintain the identity that savings equals investment.
is usually assumed to be zero.
is typically an endogenous variable in CGE models.
is provided by the modeler as an input into the model calibration procedure.
is a calibrated parameter that describes factor productivity and can be modified in an experiment.
replicates the initial equilibrium data base.
requires an initial equilibrium data base (SAM) and elasticity parameter values.
calculates the shift and share parameters used in the production and utility functions.
All of the above.
fixes one or more prices, which makes the model “square,” with the same number of variables and equations.
is an endogenous variable whose value changes as a result of experiments.
must be defined as a CPI or PPI, otherwise models’ price and quantity results will be affected.
is a price that remains fixed at its initial level and serves as a benchmark against which changes in all other prices are measured.
is the regular price, after the store-wide sale is over.
allows the base data, expressed in value terms, to be interpreted as the quantity per $1 (or one unit of any currency).
reduces database requirements to value data alone, while allowing the model to generate results for quantities, prices and values.
Both B and C.
Exporter’s world market share
Export share in production
Factors’ shares in production
Import share of consumption
Factor employment by industry
World export price
FOB export price
CIF import price
Exporter fob price plus insurance and freight
Producer price plus export tax or subsidy
Received by producer, includes production tax or subsidy
Trade-weighted sum of bilateral fob export prices
Producer price plus sales tax (domestic good); cif price plus sales tax and import tariff (imported good)
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ELEMENTS OF A CGE MODEL
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