© Scott McDonald

STAGE_LAB

STAGE_LAB is a development of STAGE models that provides a richer modelling of factor markets. The model is a development of work done for the Carnegie Endowment for International Peace and ILO. The model draws upon work done by Dorothee Flaig, in her PhD thesis, so as to address the large labour productivity changes experienced in many models that are calibrated without the quantities of labour employed by activities in the database.  Features of the model include

• Segmented factor markets
• Factor types, e.g., ‘clerks’, are distinguished by both factor type and the activity or group of activities in which they are employed
• Factor types are perfect substitutes within each group of activities, but imperfect substitutes between activities
• Factors types can transition between different factor categories
• The user specifies the substitution patterns that are open - all other pathways are closed by default
• The model uses data on the quantities of factors that are employed by different activities IF factor quantity data are available
• This relaxes the standard/common Harberger convention and its associated assumption about factor market flexibility
• The user is required to address issues relating to the extent to which factor productivities are factor type and/or activity specific
• Other features are taken from STAGE 2

Downloads

Technical Document

User Guide