Resource Center

Advanced Search
Technical Papers
Working Papers
Research Memoranda
GTAP-L Mailing List
CGE Books/Articles
Important References
Submit New Resource

GTAP Resources: Frequently Asked Question Details

Subject: Exogenous taxes

Question: I am working with the Gtap in some trade policies simulations.

I would like to quantify the impact of some trade policies that include

conditions on rules of origin. I am aware that, unless I generate a new

sector , I will not be able to proprerly design the shock. However, I think

that I can simulate the trade policy implications by an import subsidy plus

a tax on domestic consumption and on exports. The problem is that in the

standard closure, taxes on domestic and imported purchases by firms, private

households and government are not exogenous (tfm, tfd, tpm, tpd, tgm, tgd).

My question is how can I exogenize these variables, that is to say which

variable should become endogenous instead. Thank you very much for your help.

Answer: These taxes ARE exogenous, they are just omitted from the model in the simple version used in RunGTAP in order to make it more manageable in size. You will need to recondense the model to make them available. For this, you will need to use GEMPACK.

Source: Mailing List

Date Added: 3/4/2003