© Scott McDonald
P6: Introduction to Nested Functions
This module provides an introduction to nested CES functions that are a standard tool in CGE models. They are illustrated using production functions and demonstrate how nested functions can be coded using appropriate set assignments.
The use of nested functions is a core feature of most CGE models and opens up many possibilities, e.g., different substitution possibilities between subsets of factors, energy CGE models, water CGE models, etc.
Programme
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|
Topic |
Tasks |
Exercises |
Files (in order) |
|
P6:1 |
Introduction to nested function |
Introduction to nested functions |
None |
|
|
P6:2 |
Two-Level nest |
Code two-level production nest |
Coding smod_t2 and running a standard trade policy experiment |
2 level prodn syst smod_t2 ppt.pdf |
|
P6:3 |
Three-Level nest |
Code three-level production nest |
Coding smod_t3 and running a standard trade policy experiment Coding a generalised smod_t3 and running a standard trade policy experiment |
3 level prodn syst smod_t3 ppt.pdf |