TAX TOY

The TAX TOY is a small-dimensioned database that can be used to study the general equilibrium effects of 
an introduction of one (or more) taxes into a distortion-free world (zero taxes in the initial equilibrium).

The TAX TOY model uses 3x3 v7.0 database of the United States and an aggregate rest-of-world region.

Features of the TAX TOY are:
(1) Sectors: AGR, MFG, SER
(2) Countries:  US, ROW
(1) Developed using GTAP's AlterTax utility to remove all taxes in the US3x3 v7.0 database.
(2) Parameter RORDELTA is set to 0.

Model experiments that replicate the results reported in "Introduction to Computable General Equilibrium Models," Burfisher, 2011:

Experiment 15tmMFG (table 8.2) introduces a 15- percent import tariff (tm) on manufactured imports by the U.S.
Experiment  15txsUS (table 8.3) introduces a 15- percent export tax (txs) on manufactured exports by the U.S. to ROW
Experiment 15toMF (table 8.5) introduces a 15-percent production tax on U.S. manufacturing output
Experiment 15tpdHLD (table 8.7) introduces a 15-percent sales tax on private consumer demand for domestically-produced manufactures. 

