© Scott McDonald & Karen Thierfelder
STAGE 2 is a development of the STAGE model. It is calibrated using transactions data presented in a Social Accounting Matrix (SAM) format. The model is a direct descendant of an early US Department of Agriculture model. The model also owes a lot to the development of the SAM approach to national accounting and the SAM approach to modelling.
Standard Model Features
Trade is modelled using nested CES (imports) and CET (exports) functions with an adaptation to mitigate the impacts of small trade shares. Production is modelled using nested CES functions; all activities (industries) are modelled as multi product activities, i.e., the SAM is configured using a Supply and Use table format. There are multiple tax instruments on commodities, activities, factors and institutions and multiple sources of savings. The model is designed to include large numbers of factor (labour) and household accounts.
Additional Model Features
Domestic trade and transport margins; price responsive output mix by activities (CET functions).