GTAP Models: Dynamic GTAP ModelWhat is the Dynamic GTAP Model?
GDyn is the result of continuing research aimed at extending GTAP's standard modeling framework to incorporate dynamic behavior.
It includes all the special features of the standard GTAP Model, such as the sophisticated consumer demands and inter-sectoral factor mobility, as well as incorporating a new treatment of investment behavior and additional accounting relations to keep track of foreign ownership of capital.
What Can You Do with GDyn?
The GDyn Model can be used to determine how changes in policy, technology, population and factor endowments can affect the path of economies over time.
Users are able to alter various aspects of an experiment including the closures, shocks and base line scenario. In addition to obtaining the resulting percentage changes in bilateral trade, sectoral and regional output, and private household and government consumption that you are familiar with for the GTAP Model, it also includes changes in foreign and domestic wealth and growth rates in capital.
A number of applications have been undertaken using the GDyn Model relating to the East Asian crisis, China's growth, China's accession to the WTO and land use which are available in the GDyn book and on the GTAP website.
The GDyn Model is documented in the following book and papers:
- GDyn Book: Dynamic Modeling and Applications in Global Economic Analysis by Elena Ianchovichina and Terrie Walmsley (eds), Cambridge University Press, 2012
- A Disequilibrium Model of International Capital Mobility, (1999), Elena Ianchovichina, Robert McDougall, and Thomas Hertel.
- Structure of Dynamic GTAP, GTAP Technical Paper No. 18, by Elena Ianchovichina and Robert McDougall. (Chapter 2)
- Asian Crisis - Ianchovichina, E., T. Hertel and R. McDougall (1999): The East Asian Meltdown: It's Not All Bad News, Choices: The Magazine of Food, Farm, and Resource Issues, Second Quarter, June 1999.
- International Capital Mobility and Asset Ownership Issues - Ianchovichina, E., R. McDougall, and T. Hertel (forthcoming): China in 2005 Revisited: The Implications of International Capital Mobility, under review.
- Walmsley, T. L.; and Hertel, T.W.; China's Accession to the WTO: Timing is Everything, paper presented at the International Conference on Global Economics Transformation after the Asian Economic Crisis, Hong Kong, May 27-28, 2000.
- Walmsley*, T. L.; Hertel, T. W.; and Ianchovichina, E., Assessing the Impact of China's Accession to the WTO on Foreign Ownership, Pacific Economic Review, 2006.
- Ianchovichina E.; and Walmsley, T. L.; Impact of China's Accession on East Asia. Contemporary Economic Policy, 23(2); 261-77, 2005
- Financial Crisis - Walmsley, T; L.; and Strutt, A.; Trade and Sectoral Impacts of the Financial Crisis: A Dynamic CGE Analysis, Paper presented at 13th Annual Conference on Global Economic Analysis, Bangkok, Thailand, June 2010.
The GDyn Model builds on the GTAP Data Base augmented with foreign income data and allows dynamic analysis to be undertaken without imposing severe limitations on the model size. A FlexAgg program has been produced which aggregates the GDyn specific GTAP Data Base for use with the GDyn Model. The data aggregated by this program is based on the GTAP 7 Data Base supplemented with additional data on income payments and convergence parameters. The GDyn Data Base is documented in Dynamic Modeling and Applications in Global Economic Analysis. The following chapters are available on this website:
- Behavioral and Entropy Parameters in the Dynamic GTAP Model by Alla Golub and Robert McDougall, (Chapter 3)
- An Overview of the Dynamic GTAP Data Base: The Data Base Construction and Aggregation Programs by Robert McDougall, Terrie Walmsley, Alla Golub, Elena Ianchovichina and Ken Itakura, (Chapter 4)
- Implementing the Dynamic GTAP Model in the RunDynam Software by Ken Itakura, Elena Ianchovichina, Csilla Lakatos and Terrie Walmsley, (Chapter 7)
The software for the GDyn Model is based on release 10.0 of GEMPACK using the RunDynam software interface. These software products have been developed at the Centre of Policy Studies and are available from them.
The GDyn Short Course is held every two years. Contact the Center for further information.
Model Code/Tab file
Three versions are available: GDyn.tab (standard version), GDyns.tab (savings version as documented in Chapter 14 of the GDyn book), GDync.tab (complementarity version as documented in the Appendix of the GDyn Book). These versions include post simulation processing (GDynView, GDynVol, Taxrates and Welfare) to obtain summary statistics, tax rates and undertake the welfare decomposition. These are documented in Chapters 6 and 7 of the GDyn book.
GDyn Model Version History
- GDyn v3.6 - correction to avoid zero divide issues
- GDyn v3.5 - correction to post-simulation volumes (DTOT)
- GDyn v3.4 - correct to welfare decomposition
- GDyn v3.3 - correction of error to income calculation. (merge all into one zip file)
- GDyn v3.2 - post-sim processing included (GDynView, GDynVol, Taxrates and welfare decomp)
CGE Baseline Data and Documentation – Projections data, baselines documentations and GemPack programs to help GDyn users in constructing their own baseline.