1 A Recursive Dynamic Computable General Equilibrium Model For ...

More documents

Recommendations

Info

Domestic Good 1 Good 1 Good 1 CES Local Market KEY Functional <strong>For</strong>m Inputs or Outputs up to Imported Good 1 CET Good 2 Export Market Domestic Good G up to CET Activity Level Leontief Good G CES Labour type 1 6 Imported Good G Labour type 2 Land Local Market up to Primary Factors CES Labour CES Figure 1: The production structure of ORANI-G: Source: Horridge (2003) CET Good G Export Market 'Other Costs' Capital Labour type O
1.1.2 Private Final Demand In ORANI-G, final demands stem from four main sources: household consumption, investment/capital creation, government consumption and exports. This is also the classification of final demand adopted in input-output tables, the main source of the model database. V3PUR(c,s) p3(c,s) x3(c,s) 3t t V3PUR_S(c) p3_s(c) x3_s(c) 3t t Domestic Good 1 V3TOT p3tot x3tot Good 1 CES Imported Good 1 Household Utility Klein- Rubin up to 7 Domestic Good C Good C CES Figure 2. Private Demands in ORANI-G Source: Horridge (2003) Subsistence V3SUB(c) p3_s(c) x3sub(c) 3t t Imported Good C Luxury V3LUX(c) p3_s(c) x3lux(c) 3t t Private final demands are characterised by a single representative household. The purchase of final demands by source (i.e., domestic or imported) is conditional on a CES function (as in the production nest), whilst ‘composite’ good final demands are determined via maximisation of a Linear Expenditure System (LES) 8 utility function subject to a budget constraint (see Figure 2). As noted above, the LES function is preferable to CES or CD functions since it permits calibration to non unitary income and price elasticities of demand. This is of particular relevance when characterising (income inelastic) food demands. 1.1.3 Investment Final Demands 8 Also known as a ‘Klein Rubin’ or ‘Stone Geary’. This function is clearly discussed in Horridge (2003)
Page 1 and 2: A Recursive Dynamic Computable Gene
Page 3 and 4: Figure 5: The Private consumption n
Page 5: which the commodity is purchased. I
Page 9 and 10: capital goods in industry ‘i’ i
Page 11 and 12: nesting to incorporate energy deman
Page 13 and 14: Note, that the values of the capita
Page 15 and 16: disposable income grouping. 11 Once
Page 17 and 18: equal for each using industry ‘i
Page 19 and 20: modelled as sector-wide output cons
Page 21 and 22: Spain on (i) the biophysical charac
Page 23 and 24: the crops for which data on ‘gros
Page 25 and 26: ⎡ B ⎤ AREA = 1 − ⎢ ρ ⎣C
Page 27 and 28: qo(i,r) q1lnd(FCP) q1lnd(other agri
Page 29 and 30: Given that set-aside is mainly comp
Page 31 and 32: Price Pm Pfob Expenditure E1 E0 Q m
Page 33 and 34: household income is simply the addi
Page 35 and 36: G t = I/K (22) Relating changes in
Page 37 and 38: An additional extension of this dyn
Page 39 and 40: pick up) rather than a long term st
Page 41 and 42: A proportional link between househo
Page 43 and 44: (TRANSFER(“spend”)), less socia
Page 45 and 46: downward (negative) shock in the ex
Page 47 and 48: the data base and model structure a
Page 49 and 50: Harrison, W. J., and K. R. Pearson
Page 51 and 52: Appendix A: Nesting The choice of f
Page 53 and 54: The second condition is that the ag
Page 55 and 56: Appendix B: A Linearised representa
Page 57 and 58:
Note that the absence of any price
Page 59 and 60:
Rearrange (B14) in terms of v i,j,k
Page 61 and 62:
t n ⎡ = y j, k − ⎢ f n, j, k
show all

1 A Recursive Dynamic Computable General Equilibrium Model For ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?