GTAP Technical Paper
This paper is for CGE modelers and others interested in modern trade theory. The Armington specification of trade, assuming country-level product differentiation, has been central to CGE modelling for 40 years. Starting in the 1980s with Krugman and more recently Melitz, trade theorists have preferred specifications with firm-level product differentiation. We draw out the connections between the Armington, Krugman and Melitz models, deriving them as successively less restrictive special cases of an encompassing model. We then investigate optimality properties of the Melitz model, demonstrating that a Melitz general equilibrium is the
solution to a global, cost-minimizing problem. This suggests that envelope theorems can be used in interpreting results from a Melitz model. Next we explain the Balistreri-Rutherford decomposition in which a Melitz general equilibrium model is broken into Melitz sectoral models combined with an Armington general equilibrium model. Balistreri and Rutherford see their decomposition as a basis of an iterative approach for solving Melitz general equilibrium models. We see it as a means for interpreting Melitz results as the outcome of an Armington simulation with additional shocks to productivity and preferences variables.
Details
GTAP Technical Paper No. 36
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18th Annual Conference on Global Economic Analysis
"Information for the Policy Maker: Practical Economic Modelling for Tomorrow"
June 17-19, 2015 | Melbourne, Australia
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Melbourne Convention Centre
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Dates/Deadlines (EST)
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Abstracts / Session Proposals
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Jan 15
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Abstract Review
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Jan 21-Feb 15
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Acceptance Notifications
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late Feb
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Final Papers
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Apr 15
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Registrations
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Apr 30
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Payments
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May 7
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The Center for Global Trade Analysis is pleased to partner with Centre of Policy Studies (CoPS), Victoria University, to organize this event.
The goal of the conference is to promote the exchange of ideas among economists conducting quantitative analysis of global economic issues. Particular emphasis will be placed on applied general equilibrium methods, data, and application. Related theoretical and applied work is also welcome.
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23rd Annual Short Course in Global Trade Analysis
"Introduction to Applied General Equilibrium Analysis in a Multi-Region Framework"
July 11-17, 2015 | West Lafayette, Indiana, USA
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Purdue University
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Dates/Deadlines (EST)
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Applications
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Feb 15
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Acceptance Notifications
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March
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Online Course
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Apr 27-Jun 28
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The course consists of a mix of daily lectures, lab assignments and informal discussions designed to introduce participants to the basic features of the GTAP Model and data base allowing participants to leave with the capability of designing, conducting and analyzing their own simulations. The objectives of the course are:
- To introduce participants to a standardized framework for conducting global policy analysis in an applied general equilibrium setting
- To provide participants with ample hands-on training with software that has been tailored to global economic analysis
- To give participants the opportunity to interact with economists working on global trade and resource use issues, and become part of an international network
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2015 Short Course in Dynamic Global Trade Analysis
"Dynamic Modeling and Applications in Global Economic Analysis"
October 9-14, 2015 | West Lafayette, Indiana, USA
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Purdue University
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Dates/Deadlines (EST)
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Applications
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Apr 5
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Acceptance Notifications
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May
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Online Course
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Aug 10-Sep 27
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The course consists of a mix of daily lectures, lab assignments and informal discussions designed to introduce participants to the basic features of the Dynamic GTAP Model allowing participants to leave with the capability of conducting and analyzing their own GDyn simulations. The objectives of the course are:
- To introduce participants to a dynamic model designed for conducting global trade analysis in an applied general equilibrium setting
- To provide participants with ample hands-on training with software that has been tailored for undertaking analysis using a dynamic recursive model
- To give participants the opportunity to interact with economists working on global trade and resource use issues using a dynamic modeling framework
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2015-2 GTAP 101 Course
"Introduction to Computable General Equilibrium Modeling"
September 14 - October 30, 2015
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Dates/Deadlines (EST)
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Applications
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Apr 1-Jun 28
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Acceptance Notifications
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August
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Coursework based on:
Introduction to Computable General Equilibrium Models
by Mary E. Burfisher
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The objective of GTAP 101 is to engage participants in an active, team-based process of learning about the GTAP CGE model and its use in applied economic policy analysis. The curriculum is geared to advanced undergraduates, graduates and professionals. Following the course, participants will be entry-level modelers and more informed consumers of CGE-based analyses.
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purdue.edu.
