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GTAP Resource #6406

"Approximating International Linkages in a National CGE Model"
by Schreiber, Andrew, Alex Marten and Ann Wolverton

This paper assesses the trade-offs of incorporating a reduced form representation of international trade in a national computable general equilibrium model setting. We compare the efficacy of a reduced form representation of a large open economy model using estimated elasticities derived from the GTAPinGAMS package with a model with the rest of world explicitly denominated. We then apply the reduced form framework to U.S. EPA’s SAGE model, a large scale intertemporal CGE model of the United States economy. We explore implications of the reduced form framework by comparing modeled impacts to those produced by a version of SAGE modeled as a small open economy. Particular attention is paid to how the reduced form approach to modeling international trade linkages interacts with other salient features of the more complicated modeling framework.

Resource Details (Export Citation) GTAP Keywords
Category: 2021 Conference Paper
Status: Not published
By/In: Presented during the 24th Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2021
Created: Schreiber, A. (4/15/2021)
Updated: Schreiber, A. (4/15/2021)
Visits: 519
- Calibration and parameter estimation
- Trade and the environment
- North America

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