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GTAP Resource #3611

"Addressing a ‘self-trade’ issue in GTAPAgg"
by Hamdi-Cherif, Meriem

The successive versions of the GTAP databases are provided with GTAPAgg, a programme that computes values of the series of the database for any regional and sectoral aggregation. A ‘self-trade’ issue arises from the fact that GTAPAgg aggregates the several series concerned with international trade, like any other series, by simply summing them up: the resulting series include a share of exports and imports happening between the aggregated regions, which should rather be treated as economic flows internal to the region resulting from the aggregation process.
This paper details a method that aims at solving this shortcoming, and discusses the importance of doing so. A first section puts the research question into context and discusses its likely importance when using GTAP as a calibration dataset for computable general equilibrium modelling. A second section details the analytics of the method proposed to correct the aggregation process, in the broader framework of a programme extending GTAPAgg to the production of national account matrixes in the standard United Nations format. An appendix provides the code of the extended aggregation programme developed.

Resource Details (Export Citation) GTAP Keywords
Category: 2011 Conference Paper
Status: Published
By/In: Presented at the 14th Annual Conference on Global Economic Analysis, Venice, Italy
Date: 2011
Created: Hamdi-Cherif, M. (4/15/2011)
Updated: Hamdi-Cherif, M. (4/15/2011)
Visits: 2,319
- Software and modeling tools
- Calibration and parameter estimation
- The GTAP Data Base and extensions

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