© Scott McDonald
P2: A Closed Economy CGE Model
This module involves creating the simple 2-sector closed economic general equilibrium (GE) with simple policy instruments. The production and consumption functions are Cobb-Douglas and the tax instruments are ad valorem taxes. It is the simplest possible Computable General Equilibrium (CGE) model with policy instruments.
Programme
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Topic |
Tasks |
Exercises |
Files (in order) |
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P2:1 |
Adding Government, Investment & Intermediate inputs |
Coding taxes, investment & intermediate inputs; testing a model |
Coding an extended 2*2*2*2; testing the model |
Two Sector Closed Model Pt 1 ppt.pdf Two Sector Closed Model Pt 1 ppt.mp4 Two Sector Closed Model Pt 2 ppt.pdf Two Sector Closed Model Pt 2 ppt.mp4 Two Sector Closed Model Pt 3 ppt.pdf Two Sector Closed Model Pt 3 ppt.mp4 Two Sector Model Exercises.pdf |
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P2:2 |
Tax experiments in a closed economy |
Coding tax policy experiments |
Tax experiments; interpreting results |
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P2:3 |
Using LOOPS in GAMS |
Running experiments in LOOPS |
Experiments in loops; interpreting results |
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P2:4 |
Tax experiments and factor market clearing |
Coding compound experiments with different macro closures |
Coding and interpreting compound experiments |
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P2:5 |
Interpreting results |
Collecting experiment results |
Interpreting results |
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P2.6 |
Policy Analysis |
Direct vv indirect taxes and alternative macro closure |
Interpreting results |
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