The PROVIDE Project Standard Computable General Equilibrium ...

PROVIDE Project Technical Paper 2003: 3 October 2003
The capital account includes provision for two expenditure accounts relating to
investment. All expenditures on stock changes are registered in the account dstoc, while all
investment expenditures are registered to the account kap. All incomes to the capital account
accrue to the kap account and stock changes are funded by an expenditure levied on the kap
account to the dstoc account.
Conventions
The equations for the model are set out in nine ‘blocks’; which group the equations under the
following headings ‘prices’, ‘production’, ‘trade’, ‘income’, ‘expenditure’, ‘taxes’, ‘market
clearing’, ‘GDP’ and ‘model closure’. This grouping of equations is intended to ease the
reading of the model rather than being a requirement of the model.
A series of conventions are adopted for the naming of variables and parameters. These
conventions are not a requirement of the modeling language; rather they are designed to ease
reading of the model.
All VARIABLES are in upper case.
The standard prefixes for variable names are: P for price variables, Q for quantity
variables, E for expenditure variables, Y for income variables, and V for value
variables
All variables have a matching parameter that identifies the value of the variable in
the base period. These parameters are in upper case and carry a ‘0’ suffix, and are
used to initialise variables.
A series of variables are declared that allow for the equiproportionate adjustment of
groups of parameters. These variables are named using the convention **ADJ,
where ** is the parameter series they adjust.
All parameters are in lower case, except those used to initialise variables.
Names for parameters are derived using account abbreviations with the row account
first and the column account second, e.g., actcom** is a parameter referring to the
activity:commodity (supply or make) sub-matrix;
Parameter names have a two or five character suffix which distinguishes their
definition, e.g., **sh is a share parameter, **av is an average and **const is a
constant parameter;
The names for all parameters and variables are kept short.
3.1. Price Block Equations
The price block consists of ten price equations; four of which refer to the treatment of trade.
The domestic price of competitive imports (P1) is the product of the world price of imports
© S. McDonald
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