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gancns.gms : Macro-Economic Framework for India - CNS

This general equilibrium model has been used to study the
adjustment policies of the Indian government in response to
internal and external shocks.

The original version, (GANGES,SEQ=97), was formulated as an
optimization model. However, the model consist of a set of
nonlinear equations and it has only one solution. This version
is formulated directly as a system of nonlinear equations using
the CNS = Constrained Nonlinear System model type.
Reference:
Large Model of Type: CNS
$Title Macro-Economic Framework for India (GANCNS,SEQ=210) $Stitle Set Definitions $Ontext This general equilibrium model has been used to study the adjustment policies of the Indian government in response to internal and external shocks. The original version, (GANGES,SEQ=97), was formulated as an optimization model. However, the model consist of a set of nonlinear equations and it has only one solution. This version is formulated directly as a system of nonlinear equations using the CNS = Constrained Nonlinear System model type. Mitra, P, and Tendulkar, S, Coping with Internal and External Exogenous Socks: India. Tech. rep., The World Bank, 1986. $Offtext Set i 6 sectors of economy / agricult agriculture sector cons-good consumer goods sector cap-good capital goods sector int-good intermediate goods sector pub-infr public infrastructure sector service services sector / sa(i) agriculture sector / agricult / sc(i) capital goods sector / cap-good / si(i) public infrastructure sector / pub-infr / ss(i) services sector / service / im(i) importing sectors ie(i) exporting sectors manufact(i) manufacturing sectors / cons-good , cap-good , int-good / ty income categories / yself self-employment income ywage wage income ycap land or capital income yinfr income from government subsidies via infrastructure ynonp non-production income / li(ty) production income categories ; li(ty) = yes ; li("ynonp") = no ; Set r regions / urban urban regions rural rural regions / ri(r,i) mapping between regions and sectors / rural.agricult urban.(cons-good,cap-good,int-good,pub-infr,service) / datvar input variables / return-cap income from capital investments return-inf income from infrastructure self-empl income from self employment wage-labor income from wage and labor dom-inter domestically produced intermediate goods imp-inter imported intermediate goods pub-cons public consumption (domestic and imported) fix-inv fixed capital investments (domestic and imported) change-sto change in stock cons-imp household consumption - imported xvoli constant term used in calculating export volume / taxvar tax variables / dom-inter indirect taxes on domestic intermediate inputs imp-inter indirect taxes on imported intermediate inputs dom-cons total taxes on final domestic consumption imp-cons total taxes on final imported consumption profits total taxes on profits self-emp total taxes on self-employment income tax-wage total taxes on wage income / stockvar stock variables / capital total capital stock (millions of rupees) infrast total infrastructure stock (millions of rupees) wage-labor total labor force (millions of persons) self-empl total self-employment (millions of persons) / sigma elasticity of substitution parameters / sigmax between final demands for domestic and imported capital goods sigmaz between value added and intermediate inputs sigman between domestic and imported intermediate inputs sigmav between capital. self-employment and wage labor sigmas between land and agriculture labor eta export elasticity / Alias (i,j) ; Alias (ty,tz) ; Alias (manufact,manuf) ; Set acv gdp expenditure categories / ndp net domestic product gdp gross domestic product privc private consumption gdpmp gdp at market prices govc government consumption gfi gross fixed investment chan-sto change in stock invest total of gfi and change in stock exports exports imports imports / indicat target indicators at constant prices / gdpmp gdp at market prices privc private consumption gfi fixed investment invest investment and change in stock exports total exports imports total imports gdpgrt growth rate of gdp at market prices cnsgrt growth rate of private consumption gfigrt growth rate of fixed investment invgrt growth rate of total investment expgrt growth rate of exports impgrt growth rate of imports cnsshr consumption to gdp at market prices ratio gfishr gfi to gdpmp ratio expshr exports to gdpmp ratio impshr imports to gdpmp ratio / years time horizon for tracking / 7374 1973-74 -- base year 7475 1974-75 7576 1975-76 7677 1976-77 7778 1977-78 7879 1978-79 7980 1979-80 8081 1980-81 8182 1981-82 8283 1982-83 8384 1983-84 -- last year of tracking / t(years) current year ; t(years) = no ; t("7374") = yes ; $Stitle input data tables Table dat(datvar,i) factor remuneration (current millions of rupees) agricult cons-good cap-good int-good pub-infr service return-cap 64493.3 6406.5 5434.4 8567.9 4401.9 27677.2 self-empl 148431.0 4937.3 13714.3 6488.8 38411.1 wage-labor 48364.6 12560.5 16267.7 17072.2 9941.2 73786.0 dom-inter 77681.1 68904.0 54658.1 47254.0 6872.7 48988.9 imp-inter 2356.0 3201.3 2307.3 9801.7 1.3 572.0 pub-cons 816.9 544.0 4730.1 4423.9 2986.2 36832.5 fix-inv 623.9 139.5 76198.8 2970.4 252.1 5076.3 change-sto 7092.5 5944.2 1756.4 6073.7 272.2 cons-imp 3159.9 504.3 5235.6 4170.9 xvoli 2977.8 10046.2 990.9 5984.0 ; im(i) = yes$dat("cons-imp",i) ; ie(i) = yes$dat("xvoli",i) ; Table rate(*,i) various tax and margin rates (unitless) agricult cons-good cap-good int-good pub-infr service dep-prof 0.0729 0.2369 0.4319 0.1921 0.7191 0.3166 dep-lab 0.0106 0.0832 0.0094 0.0958 0.0761 taxrat-dom 0.0212 0.0865 0.0972 0.1212 0.1268 0.1056 taxrat-imp 0.3134 0.1629 0.4247 0.2790 0.8461 0.6715 taxrfd-dom - 0.0013 0.32 0.40 0.40 taxrfd-imp 0.0731 0.6728 0.3781 0.7236 tradm-fd 0.14480 0.01368 0.03103 tradm-exp 0.16257 0.50 0.33460 0.13017 tradm-imp 0.50 0.07130 Table tax(taxvar,i) tax data (current millions of rupees) agricult cons-good cap-good int-good pub-infr service dom-inter 1649.8 5964.3 5314.1 5727.0 871.5 5171.3 imp-inter 738.5 521.6 989.2 2734.6 1.1 384.1 dom-cons -5570.9 16739.9 2303.2 4032.0 47.1 318.8 imp-cons 231.0 339.7 1979.6 1079.0 profits 704.7 597.8 942.5 484.2 3044.5 self-emp 222.2 617.1 292.0 1728.5 tax-wage 565.2 732.0 768.2 447.4 3320.4 Table stock(stockvar,i) stock data (current millions of rupees) agricult cons-good cap-good int-good pub-infr service capital 515946.4 29570.0 43475.2 68543.2 168695.0 417500.0 infrast 1881.2 1403.9 2145.8 9995.2 4621.0 2694.2 wage-labor 43.325 1.697 2.198 2.307 1.343 9.971 self-empl 132.735 3.545 9.847 4.659 27.578 Table elast(sigma,i) elasticity parameters (unitless) agricult cons-good cap-good int-good pub-infr service sigmax 0.5 0.5 0.5 0.5 0.5 0.5 sigmaz 0.9 1.1 1.1 1.1 1.1 1.1 sigman 1.5 1.5 1.5 1.5 1.5 1.5 sigmav 0.9 0.7 0.7 0.7 0.7 0.7 sigmas 0.5 0.7 0.7 0.7 0.7 0.7 eta 1.5 1.5 1.0 1.5 1.0 Table a(i,j) domestic input output coefficients matrix (unitless) agricult cons-good cap-good int-good pub-infr service agricult 0.760190 0.549245 0.129944 0.112517 0.000146 0.206418 cons-good 0.075543 0.196520 0.005262 0.036037 0.010709 0.026161 cap-good 0.029948 0.012795 0.117179 0.039635 0.555240 0.112295 int-good 0.062838 0.086158 0.522219 0.524852 0.100921 0.305633 service 0.071481 0.155282 0.225396 0.286959 0.332984 0.349493 Table am(i,j) imports input output coefficients matrix (unitless) agricult cons-good cap-good int-good pub-infr service agricult 0.0011 0.843906 0.027276 cons-good 0.002833 0.127355 0.000087 0.045681 cap-good 0.000387 0.081846 0.006631 0.048316 0.00056 int-good 0.996067 0.028352 0.918067 0.920412 0.951684 0.99944 Table ayi(i,r) shares for allocation of sectoral income to regions (unitless) rural agricult 1.0 cons-good .4635 service .4635 ; ayi(i,"urban") = 1 - ayi(i,"rural") ; Parameter ayt(r) shares for allocation of transfers to regions (unitless) / rural .8 / ; ayt("urban") = 1 - ayt("rural") ; Table ac(i,r) expenditure shares (unitless) urban rural agricult 0.32629 0.482105 cons-good 0.257648 0.26756 cap-good 0.028424 0.02644 int-good 0.039263 0.015185 pub-infr 0.011206 0.00897 service 0.337169 0.19974 Table gamma(i,r) per capita committed consumption (units) urban rural agricult 2.228551 2.037878 cons-good 0.300443 0.332562 cap-good -.02261 0.002407 int-good 0.096637 0.128932 pub-infr 0.07928 0.092737 service -.59266 0.064369 Table conpar(*,r) various consumer parameters urban rural alpha 0.376842 0.309118 beta 0.76777 0.77814 pop 122. 458. Table baseprice(i,*) base year prices pv00 v00 pk00 pg00 pc00 pq00 agricult 1.0050 2616.0656 0.1258 1.0076 1.1483 1.0042 cons-good 1.0155 249.8925 0.2320 1.1071 1.3423 1.0064 cap-good 0.9617 303.6711 0.1001 0.7277 1.3668 0.9763 int-good 0.9820 310.7917 0.1180 0.9207 1.3761 0.9829 pub-infr 1.0500 157.2187 0.0306 1.2566 1.0977 1.0647 service 1.0045 1443.4865 0.0691 1.0624 1.0023 1.0023 Scalar nct net current transfer / 19.20 / nfi net factor income / -32.50 / gtra interest on national debt / 46.7 / gtrb domestic current transfers / 90.9 / ; $Stitle time series of exogenous data Table series(*,years) exogenous data series 7374 7475 7576 7677 7778 7879 7980 8081 8182 8283 8384 cg 503.336 511.10 645.46 697.87 702.24 750.71 754.74 809.06 856.64 971.38 1008.49 xsa 1.000 .9366 1.1158 .9504 1.1097 1.0306 .8981 1.1041 1.0356 0.9796 1.1364 er 7.791 7.796 8.653 8.939 8.563 8.206 8.076 7.893 8.929 9.628 10.312 usdefl 1.0000 1.0878 1.1862 1.2539 1.3274 1.4259 1.5469 1.6845 1.8422 1.9595 2.0354 indefl 1.0000 1.1665 1.1181 1.1948 1.2395 1.2648 1.4572 1.6157 1.7789 1.9119 2.1381 savf 47.9 96.1 57.9 -103.1 -90.3 -57.5 -29.9 199.6 241.2 237.0 265.0 gtra 47.70 34.00 49.10 60.10 69.70 93.40 100.80 149.00 184.20 270.40 270.40 gtrb 90.90 115.00 135.00 154.70 176.20 200.50 239.20 283.50 331.10 400.50 400.50 nfi -32.50 -29.10 -25.50 -23.30 -23.30 -15.60 15.30 29.80 -.70 -68.10 -68.10 nct 19.20 27.40 52.80 73.90 102.20 104.20 162.40 225.70 222.10 252.70 252.70 dmsa 31.60 40.69 59.36 39.79 5.68 3.76 3.74 3.90 15.51 13.69 21.66 dmco 5.04 1.76 2.28 5.68 21.95 13.64 8.62 20.23 16.48 11.93 16.31 dmsi 41.71 42.14 40.96 42.23 43.62 44.06 48.47 48.85 46.00 40.42 29.07 idshr 0.7954 0.7604 0.8201 0.8746 0.9281 0.8280 0.8111 0.8253 0.8346 0.8575 0.8583 const 133.125 134.88 136.67 138.47 140.31 142.17 144.05 145.96 147.91 149.885 152.64 totlab 65.09 67.88 70.75 73.75 76.84 80.06 83.39 86.84 90.43 95.14 97.10 pkvsa 0.1807 0.1537 0.1511 0.2071 0.2071 0.2080 0.1845 0.1861 0.1696 0.1585 0.1605 pkvni 0.2909 0.3703 0.2967 0.2322 0.2752 0.2912 0.3356 0.2924 0.3038 0.2777 0.2725 pkvsi 0.1167 0.1350 0.1827 0.1761 0.1830 0.1504 0.1770 0.1825 0.1952 0.2549 0.2457 pkvss 0.4117 0.3411 0.3695 0.3846 0.3346 0.3505 0.3029 0.3390 0.3314 0.3092 0.3213 pim1 1.0000 1.2582 1.5165 1.4615 1.4451 1.5495 1.8956 1.7261 1.5030 1.3932 1.3841 pim2 1.0000 1.9203 1.5072 1.6667 1.4783 1.4710 1.8261 1.1915 1.3386 1.1637 1.2940 pim3 1.0000 1.3826 1.8261 2.0174 1.7913 2.2957 2.7826 1.9146 1.6529 1.6123 1.5498 pim4 1.0000 1.6423 1.9238 1.6655 1.6548 1.6830 1.9890 1.9275 2.0165 2.0239 2.0025 pim5 1.0000 2.2036 2.4820 2.7695 2.8593 2.8533 4.5350 6.8905 8.1604 7.7164 6.9373 pim6 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 pie1 1.0000 1.3202 1.3051 1.3065 1.9159 1.3546 0.8066 1.3053 1.5555 1.2789 1.2691 pie2 1.0000 1.2412 1.3048 1.5450 1.8197 1.8975 1.9845 2.0995 2.2128 2.1709 2.0801 pie3 1.0000 0.8929 1.2857 1.2929 1.3857 1.3286 1.5500 1.3552 1.6076 1.5771 1.5111 pie4 1.0000 1.3776 1.4375 1.4746 1.4763 1.4986 1.6509 1.7620 2.0759 2.0366 1.9914 totpu 122.00 124.89 129.90 134.85 140.05 145.70 151.39 157.26 163.23 169.38 175.89 totpr 458.00 468.11 477.10 485.15 493.95 503.30 512.61 521.74 530.77 539.62 549.11 gdpmp 5944.2 8611.2 9261.9 privc 4340.3 4157.8 4311.7 4206.7 4847.8 4981.0 4479.0 4961.4 5280.9 5460.3 5940.0 gfi 902.9 917.9 1182.3 1314.2 1394.7 1481.2 1456.4 1610.0 1715.0 1785.1 1895.1 invest 1135.2 1207.2 1441.6 1502.6 1502.8 1788.9 1795.5 1950.9 2054.8 2081.8 2207.9 exports 283.0 306.0 356.6 426.8 410.5 444.0 518.5 517.0 516.2 532.9 559.1 imports 317.6 275.9 279.2 278.7 363.1 394.1 377.9 554.4 598.6 599.9 624.6 cns-curr 4340.3 gfi-curr 902.9 1093.0 1324.8 1526.7 1714.6 1882.5 2090.2 2521.7 2971.6 2971.6 2971.6 inv-curr 1135.2 1450.9 1641.8 1766.9 1854.8 2293.3 2622.8 3144.3 3668.0 3668.0 3668.0 gdpmp-curr 5944.2 6968.1 7202.3 7586.7 8716.1 9610.3 10120.4 11989.6 14161.5 14161.5 14161.5 exp-curr 283.0 383.5 481.2 613.9 663.6 711.5 838.1 902.9 1025.3 1025.3 1025.3 imp-curr 317.6 477.9 566.4 561.4 652.2 742.6 985.9 1357.9 1487.9 1487.9 1487.9 cns-defl 1.0000 1.2019 1.1389 1.1759 1.2342 1.2820 1.4608 1.6117 1.7851 1.7851 1.7851 gdpc 5377.2 5423.5 5936.0 5981.1 6508.0 6882.3 6518.0 7030.2 7406.3 7534.4 7958.1 ax1 1 .9677 1.0504 .9931 1.0141 1.0149 .9884 1.0823 1.0238 .9726 1.0623 ax2 1 1.2461 1.2442 1.2179 1.3060 1.5719 1.7899 1.7452 1.6679 1.8441 1.8293 ax3 1 1.1884 1.3716 1.6430 1.6913 1.6744 1.9078 1.4786 1.5309 2.0376 1.8724 ax4 1 .7520 .5640 .7232 .8045 .8531 .6947 .5982 .6997 .7295 .7110 ax5 1 .7509 .5631 .6157 .6351 .5144 .3781 .4568 .5778 .5619 .7504 ax6 1 .9837 .7377 .8285 .9107 .8105 .7230 .7224 .7740 .7775 .7132 exscale 1 .9000 1.0890 1.1165 1.0487 1.0540 1.0337 .8801 1.1469 1.2994 1.2439 betar 1 1 1.0372 1.0554 1.1103 1.0940 .9958 .9817 .9359 .9576 1.0020 betau 1 1 .9000 .8100 .8930 .8930 .8037 .8941 1.1175 1.1052 1.1100 thetai .12098 .53921 .16502 .14852 .16845 .19778 .16345 .12949 .17234 .18768 ; series("cns-curr",years) = series("privc",years) * series("cns-defl",years) ; series("pim1",years) = series("pim1",years) / series("usdefl",years) ; series("pim2",years) = series("pim2",years) / series("usdefl",years) ; series("pim3",years) = series("pim3",years) / series("usdefl",years) ; series("pim4",years) = series("pim4",years) / series("usdefl",years) ; series("pim5",years) = series("pim5",years) / series("usdefl",years) ; series("pim6",years) = series("pim6",years) / series("usdefl",years) ; series("pie1",years) = series("pie1",years) / series("usdefl",years) ; series("pie2",years) = series("pie2",years) / series("usdefl",years) ; series("pie3",years) = series("pie3",years) / series("usdefl",years) ; series("pie4",years) = series("pie4",years) / series("usdefl",years) ; $Stitle parameter declarations Parameter pie(i) international prices (rp per unit) pim(i) import prices by commodity (rp per unit) dw(r) initial wage rates (rp per unit) dcpi(r) initial cpi (rp per unit) k(i) capital and land (units) dg(i) initial infrastructure input by sector (units) totlab total employment in urban sectors (units) dsa(i) stock available from last year (units) aq(sc) scaling for q-production function (unitless) az(i) scaling for z-production function (unitless) an(i) scaling for n-production function (unitless) as(i) scaling for s-production function (unitless) av(i) scaling for v-production function (unitless) aex(i) scale of export demands (units) depp(i) depreciation rate for land or capital income (unitless) depl(i) depreciation rate for self-employment income (unitless) trmd(i) trade margin rate on domestic demand (unitless) trmx(i) trade margin rate on exports (unitless) trmm(i) trade margin rate on imports (unitless) thetak(i) enterprise savings rates (unitless) ratinf share of infrastructure in output of pub-infr (unitless) idshr share of gross fixed investment in total investment (unitless) dstshr share of change in stock in total investment (unitless) aid(i) sector i share of gross fixed investment (unitless) adst(i) sector i share of change in stocks (unitless) cg(i) government demand (units) deltaq(sc) share parameter for q (unitless) deltax(i) share parameter for x (unitless) deltaz(i) share parameter for z (unitless) deltan(i) share parameter for n (unitless) deltas(i) share parameter for s (unitless) deltav(i) share parameter for v (unitless) sigmaq(sc) elasticity of substitution between x and m (unitless) sigmax(i) elasticity of substitution between z and g (unitless) sigmaz(i) elasticity of substitution between v and n (unitless) sigman(i) elasticity of substitution between nd and nm (unitless) sigmav(i) elasticity of substitution between s and lw (unitless) sigmas(i) elasticity of substitution between h and ls (unitless) rhoq(sc) ces function exponent for q (unitless) rhox(i) ces function exponent for x (unitless) rhoz(i) ces function exponent for z (unitless) rhon(i) ces function exponent for n (unitless) rhov(i) ces function exponent for v (unitless) rhos(i) ces function exponent for s (unitless) alpha(r) intercept of housejold expenditure function (unitless) pop(r) population by region (units) eta(i) export elasticity (unitless) mu social weight on equity (unitless) psi weight for private utility in obj (unitless) ksi weight for investment in obj (unitless) er exchange rate (rp per $) usdefl gdp deflator for us dollar (unitless) indefl gdp deflator for indian rupee (unitless) ; Parameter rcons(*,acv) gdp expenditure by sector (constant prices) rcurr(*,acv) gdp expenditure by sector (current prices) er0 foreign exchange rate in previous period (rp per $) pim0(i) import prices in previous period (rp per unit) pnm0(i) price of intermediate imports in previous period (rp per unit) pc0(i) consumer prices in previous period (rp per unit) v0(i) value added in previous period (units) pv0(i) prices of value added in previous period (rp per unit) pls0(r) wage of self-employment in previous period (rp per unit) pk0 (i) return on land or capital in previous period (rp per unit) pq0 (i) price of output in previous year (rp per unit) ax0(i) previous period ax (unitless) beta0(r) previous period beta (unitless) exscale0 previous period exscale (unitless) gdptg gdpmp - target cnstg private consumption - target gfitg fixed investments - target invtg total investments - target exptg exports - target imptg imports - target gdppr gdp at market prices in previous period cnspr private consumption in previous period gfipr fixed investments in previous period invpr total investments in previous period exppr exports in previous period imppr imports in previous period pim00(i) import prices - base year (rp per unit) pnm00(i) price of intermediate imports in base period (rp per unit) k00(i) land and capital in base period (units) er00 exchange rate in base period (1973-74) (rp per $) mc00(r) mean per capita consumption in base period (current ) v00(i) value added in base period (units) pv00(i) price of v in base period (rp per unit) pc00(i) consumer prices in base period (rp per unit) pg00(i) price of infrastructure in base period (rp per unit) pls00(r) wage of self-employment in base period (rp per unit) w00(r) wage rates of organized labor in base period (rp per unit) pk00(i) return to land or capital in base period (rp per unit) pq00(i) output prices in base period (rp per unit) gdp00 gdpmp in base period cns00 private consumption in base period gfi00 fixed investments in base period inv00 investments in base period exp00 exports in base period imp00 imports in base period c00(r) base year consumption by region cg0(i) base year public consumption ytotal(*,*,*) income totals for urban-rural-total conex(*,r) per capita consumption pcinc(*,r) per capita income savrat(*,r) savings ratio totco(*,*) total consumption by sector (quantity and value at constant prices) shrco(i,r) shares of consumption by sector and class (constant prices) elsup(*) elasticities of supply elcon(*,*,*) elasticities of consumption ut1(r) utility at current period ut0(r) utility at base period cli(*) cost of living index (with respect to base period) taxdir tax revenue -- direct taxind tax revenue -- indirect taximp tax revenue -- net import duty infras income from infrastructure govr net tax revenue + infrastructure income govsav government savings tgovr savg + infrastructure income govtrn government transfer govcon government consumption govex government expenditure gap defined as (govr - govex - tgovr) dsapq(*) dsa*pq totdepr total depreciation (capital and self-employment income) deprec0(i) depreciation evaluated at previous years prices gva(*) gross value added gdp(*) gross domestic product grthr(acv) growth ratios of constant price components of gdp deflnac deflators comparable to nac deflators (based on previous year) dflnacb(i) price deflators relative to base period relnacb0(i) relative price deflators in base period relnacb(i) relative price deflators in current period chgnacb(i) change in relative price deflators exppi export price index imppi import price index tradeterm terms of trade xparm(*,*) parameters for static experiments match(*,*) actual and target values parm(*,*) current values of parameters pkv(i) b matrix coefficients chgv(i) change in v ; $Stitle variable declarations Variable x(i) gross output (units) g(i) flow of infrastructure (units) q(i) aggregate supply (units) pq(i) price of final output (rp per unit) m(i) final import demands (units) pm(i) post-tax and trade margin import prices (rp per unit) z(i) z output (units) v(i) value added (units) n(i) intermediate net of infrastructure (units) px(i) price of output (rp per unit) pz(i) price of z (rp per unit) s(i) value added subaggregate (units) lw(i) employment of wage labor (units) pv(i) price of value added (rp per unit) ls(i) self employment labor (units) ps(i) price of s output (rp per unit) pnd(i) price of domestic intermediate (rp per unit) w(r) wage rates of organized labor (rp per unit) cpi(r) consumer price index (rp per unit) pls(r) wage rate of self employment labor (rp per unit) pnm(i) price of intermediate imports (rp per unit) pn(i) price of intermediate goods (rp per unit) pk(i) return to capital (rp per unit) pc(i) price of consumer goods (rp per unit) fd(i) domestic final demand (units) nd(i) domestic intermediate goods (units) nm(i) import intermediate goods (units) marg trade margin service demand (units) pg(i) rent for infrastructure (rp per unit) y(ty,i) factor income for sectors of economy (current ) fy(ty,i) fixed price factor income (base year rp) wtr(ty) world transfers (current ) gtr(ty) government transfers (current ) fwtr(ty) fixed price world transfers (base year rp) fgtr(ty) fixed price government transfers (base year rp) yh(ty,r) income by region and income type (current ) fyh(ty,r) fixed price income by region and income type (base year rp) ym(r) mean per capita real income by region (units ) mc(r) mean per capita real consumption (units ) ch(i,r) private consumption (units) savh(r) household savings (current ) savf foreign savings (current $ ) savg government savings (current ) ex(i) total exports (units) invtot total gross investments (units) id(i) investment demand by sector (units) dst(i) changes in stock by sector (units) ax(i) efficiency variable (unitless) exscale scaling of export demand (unitless) tnd(i) tax rate on domestic intermediate (unitless) tnm(i) tax rate on imported intermediate (unitless) tfd(i) tax rate on final demand (unitless) tfm(i) import tax rate (unitless) tk(i) tax rate on capital (profits) (unitless) tw(i) tax rate on wages (income tax) (unitless) thetai infrastructural savings rate (unitless) taum(i) implicit tax on imports due to price differences (unitless) lambda(r) rate of wage adjustment parameter (unitless) beta(r) slope of household expenditure function (unitless) util(r) regional per capita utility (utils) utility objective value (utils) ; Positive Variables pk ; Variable dumtg sum of square deviations (absolute) dumgrt sum of square deviations in tracking dumshr sum of square deviations (on shares) ogdpmp model generated gdp at market prices ogdp model generated gdp at factor prices ocns model generated private consumption ogfi model generated gross fixed investment ochs model generated stock changes oinv model generated total investment oexp model generated exports oimp model generated imports deprec00(i) depreciation evaluated at base prices (base year rp) deprec (i) depreciation evaluated at current prices (current) ; $Stitle compute parameters and coefficients mu = 1 ; psi = 1 ; ksi = 7 ; pie(i) = 1 ; pim(i) = 1 ; pim00(i) = pim(i) ; pg.l(i) = 1 ; pg00(i) = baseprice(i,"pg00") ; px.l(i) = 1 ; ps.l(i) = 1 ; pv.l(i) = 1 ; pn.l(i) = 1 ; pz.l(i) = 1 ; pq.l(i) = 1 ; dat(datvar,i) = dat(datvar,i)/100 ; tax(taxvar,i) = tax(taxvar,i)/100 ; stock(stockvar,i) = stock(stockvar,i)/100 ; sigmax(i) = elast("sigmax",i)*1.20 ; sigmaq(sc) = 0.90 ; sigmaz(i) = elast("sigmaz",i)*1.20 ; sigman(i) = elast("sigman",i)*1.20 ; sigmav(i) = elast("sigmav",i)*1.20 ; sigmas(i) = elast("sigmas",i)*1.20 ; * * calculate rho from sigma using definition * rhox(i) = 1/sigmax(i) - 1 ; rhoq(sc) = 1/sigmaq(sc) - 1 ; rhoz(i) = 1/sigmaz(i) - 1 ; rhon(i) = 1/sigman(i) - 1 ; rhov(i) = 1/sigmav(i) - 1 ; rhos(i) = 1/sigmas(i) - 1 ; eta(i) = elast("eta",i) * 1.20 ; k(i) = stock("capital",i) ; pk.l(i) = dat("return-cap",i)/k(i) ; pk00(i) = baseprice(i,"pk00") ; pls.l("rural") = 11.182506 ; pls.l("urban") = 13.928 ; pls00("rural") = 11.2507 ; pls00("urban") = 13.7343 ; ls.l(i) = stock("self-empl",i)*100 ; Display k,pk.l,pls.l,ls.l ; * * calibrate deltas using firsts, s using values, and as using prods * deltas(i)$ls.l(i) = (k(i)/ls.l(i))**(1/sigmas(i))*pk.l(i)/sum(r$ri(r,i), pls.l(r)) ; deltas(i)$ls.l(i) = deltas(i)/(1+deltas(i)) ; deltas(i)$(not ls.l(i)) = 1 ; s.l(i) = dat("return-cap",i) + dat("self-empl",i) ; as(i) = s.l(i)*(deltas(i)*k(i)**(-rhos(i)) + ((1-deltas(i))*ls.l(i)**(-rhos(i)))$(not si(i)))** (1/rhos(i)) ; Display deltas,s.l,ps.l,as ; dw("rural") = 11.163208 ; dw("urban") = 74.00 ; w.l(r) = dw(r) ; w00(r) = dw(r) ; lw.l(i) = stock("wage-labor",i)*100 ; Display w.l,lw.l ; * * calibrate deltav using firstv, v using valuev, and av using prodv * deltav(i) = (s.l(i)/lw.l(i))**(1/sigmav(i))*ps.l(i)/sum(r$ri(r,i), w.l(r)) ; deltav(i) = deltav(i)/(1+deltav(i)) ; v.l(i) = s.l(i) + dat("wage-labor",i) ; av(i) = v.l(i)*(deltav(i)*s.l(i)**(-rhov(i)) + (1-deltav(i))*lw.l(i)**(-rhov(i)))** (1/rhov(i)) ; v00(i) = baseprice(i,"v00") ; pv00(i) = baseprice(i,"pv00") ; Display deltav,v.l,pv.l,av ; * * calibrate pnm using pnmdet * trmm(i) = rate("tradm-imp",i) ; tnm.l(i) = rate("taxrat-imp",i) ; pnm.l(i) = sum(j, am(j,i)*pim(j)*(1 + trmm(j) + tnm.l(j)) ) ; pnm0(i) = pnm.l(i) ; pnm00(i) = pnm.l(i) ; nm.l(i) = (dat("imp-inter",i)*(1+trmm(i)) + tax("imp-inter",i))/pnm.l(i) ; Display trmm,tnm.l,pnm.l,nm.l ; * * calibrate pnd using pnddet * tnd.l(i) = rate("taxrat-dom",i) ; pnd.l(i) = sum(j, a(j,i)*pq.l(j)*(1 + tnd.l(j)) ) ; nd.l(i) = (dat("dom-inter",i)+tax("dom-inter",i))/pnd.l(i) ; Display tnd.l,pnd.l,nd.l ; * * calibrate deltan using firstn, n using valuen, and an using prodn * deltan(i) = (nd.l(i)/nm.l(i))**(1/sigman(i))*pnd.l(i)/pnm.l(i) ; deltan(i) = deltan(i)/(1+deltan(i)) ; n.l(i) = nd.l(i)*pnd.l(i) + nm.l(i)*pnm.l(i) ; an(i) = n.l(i)*(deltan(i)*nd.l(i)**(-rhon(i)) + (1-deltan(i))*nm.l(i)**(-rhon(i))) **(1/rhon(i)) ; Display deltan,n.l,pn.l,an ; * * calibrate deltaz using firstz, z using valuez, and az using prodz * deltaz(i) = (v.l(i)/n.l(i))**(1/sigmaz(i))*pv.l(i)/pn.l(i) ; deltaz(i) = deltaz(i)/(1+deltaz(i)) ; z.l(i) = n.l(i) + v.l(i) ; az(i) = z.l(i)*(deltaz(i)*v.l(i)**(-rhoz(i)) + (1-deltaz(i))*n.l(i)**(-rhoz(i)))** (1/rhoz(i)) ; Display deltaz,z.l,pz.l,az ; * * calibrate deltax using firstx, x using valuex, and ax using prodx * g.l(i) = stock("infrast",i) ; dg(i) = g.l(i) ; deltax(i) = (z.l(i)/g.l(i))**(1/sigmax(i))*pz.l(i)/pg.l(i) ; deltax(i) = deltax(i)/(1+deltax(i)) ; x.l(i) = z.l(i) + g.l(i) ; ax.l(i) = x.l(i)*(deltax(i)*z.l(i)**(-rhox(i)) + (1-deltax(i))*g.l(i)**(-rhox(i)))**(1/rhox(i)) ; Display g.l,deltax,x.l,ax.l ; * * calibrate taum using pmdef and taumdet * pm.l(im) = px.l(im) ; tfm.l(i) = rate("taxrfd-imp",i) ; taum.l(im) = px.l(im)/pim(im) - (1 + trmm(im) + tfm.l(im)) ; taum.l(i)$(not im(i)) = 0 ; taum.l(sc) = 0 ; pm.l(im) = pim(im)*(1 + trmm(im) + tfm.l(im) + taum.l(im)) ; m.l(im) = dat("cons-imp",im) ; Display pm.l,taum.l,m.l ; * * calibrate q using valueq, deltaq using firstq, and aq using prodq * q.l(i) = x.l(i) + m.l(i) ; q.l(sc) = x.l(sc) + (1 + trmm(sc) + tfm.l(sc))*m.l(sc) ; deltaq(sc) = (x.l(sc)/m.l(sc))**(1/sigmaq(sc))*px.l(sc)/pm.l(sc) ; deltaq(sc) = deltaq(sc)/(1+deltaq(sc)) ; aq(sc) = q.l(sc)*(deltaq(sc)*x.l(sc)**(-rhoq(sc)) + (1-deltaq(sc))*m.l(sc)**(-rhoq(sc)))** (1/rhoq(sc)) ; pq0(i) = pq.l(i) ; pq00(i) = baseprice(i,"pq00") ; Display q.l,deltaq,pq.l ; dsa(i) = 0 ; totlab = sum(i$(not sa(i)), ls.l(i) + lw.l(i)) ; * * calibrate pc using pcdet * trmd(i) = rate("tradm-fd",i) ; tfd.l(i) = rate("taxrfd-dom",i) ; pc.l(i) = pq.l(i)*(1 + tfd.l(i) + trmd(i) ) ; pc00(i) = baseprice(i,"pc00") ; * * parameters for linear expenditure share estimation * alpha(r) = conpar("alpha",r) ; beta.l(r) = conpar("beta",r) ; pop(r) = conpar("pop",r) ; * * other parameters * tw.l(sa) = 0 ; tw.l(i)$(not sa(i)) = 0.045 ; tk.l(sa) = 0 ; tk.l(i)$(not sa(i)) = 0.11 ; thetak(si) = 1.0 ; thetai.l = 0 ; usdefl = 1.0 ; indefl = 1.0 ; er00 = sum(t, series("er",t)) ; er = er00 ; * * calibrate y, gtr and wtr using income determination equations * y.l("yself",i) = sum(r$ri(r,i), pls.l(r) )*ls.l(i)*(1 - tw.l(i)) ; y.l("ywage",i) = sum(r$ri(r,i), w.l(r))*lw.l(i)*(1 - tw.l(i)) ; y.l("ycap",i) = pk.l(i)*k(i)*(1 - thetak(i))*(1 - tk.l(i)) ; y.l("yinfr",i) = pg.l(i)*g.l(i)*(1 - thetai.l) ; gtr.l("ynonp") = (gtra + gtrb)/indefl ; wtr.l("ynonp") = (nct + nfi)*(er00/er)/usdefl ; * * calibrate private consumption using yhdef, mean, meanc, and les * yh.l(ty,r) = sum(i, ayi(i,r)*y.l(ty,i)) + ayt(r)*(gtr.l(ty) + wtr.l(ty)) ; ym.l("urban") = 14.52382 ; ym.l("rural") = 7.36096 ; mc.l(r) = exp(alpha(r) + beta.l(r)*log(ym.l(r))) ; ch.l(i,r) = (pop(r)*(pc.l(i)*gamma(i,r) + ac(i,r)*(mc.l(r) - sum(j, pc.l(j)*gamma(j,r) ) ) ))/pc.l(i) ; ch.lo(i,r) = pop(r)*gamma(i,r) + 0.1; cpi.l(r) = (sum(i, pc.l(i)*ch.l(i,r)))/sum(i, ch.l(i,r)) ; dcpi(r) = cpi.l(r) ; * * calibrate investment using iddet and dstdet * id.l(i) = dat("fix-inv",i) ; id.l(ss) = 0 ; dst.l(i) = dat("change-sto",i)/pq.l(i) ; invtot.l = sum(i, id.l(i) + dst.l(i)) ; idshr = sum(i, id.l(i))/invtot.l ; dstshr = sum(i, dst.l(i))/invtot.l ; aid(i) = id.l(i)/sum(j, id.l(j)) ; adst(i) = dst.l(i)/sum(j, dst.l(j)) ; * * calibrate export demand using export * trmx(i) = rate("tradm-exp",i) ; ex.l(i) = dat("xvoli",i)/pq.l(i) ; aex(i) = ex.l(i)/(er00*pie(i)/(pq.l(i)*(1 + trmx(i))))**eta(i) ; cg(i) = dat("pub-cons",i)/pc.l(i) ; * * calibrate fd using fddef, marg using margdet * fd.l(i) = sum(r, ch.l(i,r)) + id.l(i) + cg(i) ; marg.l = (sum(i, trmd(i)*pq.l(i)*fd.l(i) + trmx(i)*pq.l(i)*ex.l(i) + (pim(i)*trmm(i)*m.l(i))$im(i) + sum(j, am(j,i)*pim(j)*trmm(j) )*nm.l(i) ))/sum(ss, pq.l(ss)) ; * * calibrate savings using budget constraints * savh.l(r) = sum(ty, yh.l(ty,r)) - sum(i, pc.l(i)*ch.l(i,r)); savg.l = sum(i, sum(j, am(j,i)*tnm.l(j)*pim(j))*nm.l(i) + sum(j, a(j,i)*pq.l(j)*tnd.l(j)) + ((tfm.l(i)+taum.l(i))*pim(i)*m.l(i))$im(i) + tw.l(i)*sum(r$ri(r,i), w.l(r))*lw.l(i) + sum(r$ri(r,i), pls.l(r))*ls.l(i)*tw.l(i) + tk.l(i)*pk.l(i)*k(i)*(1-thetak(i)) + tfd.l(i)*pq.l(i)*sum(r, ch.l(i,r)) ) - sum(i, pq.l(i)*cg(i)) - sum(ty, gtr.l(ty)) ; lambda.l(r) = 1.0 ; ratinf = 0.758039594 ; depp(i) = rate("dep-prof",i) ; depl(i) = rate("dep-lab",i) ; $Stitle parameters for objective function Parameter wtot weights sum wgdp weight for gdp tracking wcns weight for private consumption tracking winv weight for investment tracking wexp weight fot export tracking wimp weight for import tracking gdpgrt growth rate of gdp at market prices cnsgrt growth rate of private consumption gfigrt growth rate of fixed investment invgrt growth rate of total investment expgrt growth rate of exports impgrt growth rate of imports cnsshr ratio of consumption to gdp at market prices gfishr ratio of gfi to gdp at market prices expshr ratio of exports to gdp at market prices impshr ratio of imports to gdp at market prices ; gdptg = sum(t, series("gdpmp",t)) ; cnstg = sum(t, series("privc",t)) ; gfitg = sum(t, series("gfi",t)) ; invtg = sum(t, series("invest",t)) ; exptg = sum(t, series("exports",t)) ; imptg = sum(t, series("imports",t)) ; gdpgrt = sum(t, series("gdpc",t)/series("gdpc",t)) ; cnsgrt = sum(t, series("privc",t)/series("privc",t)) ; gfigrt = sum(t, series("gfi",t)/series("gfi",t)) ; invgrt = sum(t, series("invest",t)/series("invest",t)) ; expgrt = sum(t, series("exports",t)/series("exports",t)) ; impgrt = sum(t, series("imports",t)/series("imports",t)) ; cnsshr = sum(t, series("privc",t))/gdptg ; gfishr = sum(t, series("gfi",t))/gdptg ; expshr = sum(t, series("exports",t))/gdptg ; impshr = sum(t, series("imports",t))/gdptg ; wgdp = 1.0 ; wcns = 1.0 ; winv = 1.0 ; wexp = 1.0 ; wimp = 1.0 ; wtot = wgdp + wcns + winv + wexp + wimp ; wgdp = wgdp/wtot ; wcns = wcns/wtot ; winv = winv/wtot ; wexp = wexp/wtot ; wimp = wimp/wtot ; gdp00 = gdptg ; cns00 = cnstg ; gfi00 = gfitg ; inv00 = invtg ; exp00 = exptg ; imp00 = imptg ; gdppr = gdptg ; cnspr = cnstg ; gfipr = invtg ; invpr = invtg ; exppr = exptg ; imppr = imptg ; $Stitle equation declarations Equation obj objective function (utils) objgrt objective function for growth rate tracking qgdpmp determination of gdp at market prices qgdp determination of gdp at factor prices qcns determination of private consumption qgfi determination of gross fixed investment qchs determination of stock changes qinv determination of total investment qexp determination of exports qimp determination of imports qdep00(i) determination of depreciation at base year prices qdep(i) determination of depreciation valueq(i) value of final output of capital goods (current ) prodq(sc) ces production function for final output of capital goods (units) firstq(sc) first order condition for cost min of q (units) pmdef(i) definition of post-tax import prices (rp per unit) supply(i) total non-capital goods supply (units) taumdet(i) determination of taum (rp per unit) infalloc(i) allocation of infrastructure (units) valuex(i) value of gross output (current ) prodx(i) ces production function for gross output (units) firstx(i) first order condition for profit max of gross output (units) valuez(i) value of ces z subaggregate (current ) prodz(i) ces production function for ces z subaggregate (units) firstz(i) first order condition for cost min of ces subaggregate (units) valuen(i) value of intermediate production (current ) prodn(i) ces production function for intermediates (units) firstn(i) first order condition for cost min of intermediates (units) pnddet(i) determination of domestic intermediates price (rp per unit) pnmdet(i) determination of imported intermediates price (rp per unit) values(i) value of value added subaggregate (current ) prods(i) ces production function for value added subaggregate (units) firsts(i) first order condition for cost min of value added subagg (units) valuev(i) value added exemption (current ) prodv(i) ces production function for value added (units) firstv(i) first order condition for value added maximization (units) wdet(r) determination of wage of organized labor (rp per unit) lmclear non-agricultural labor market clearing (units) pcdet(i) determination of consumer prices (rp per unit) cpidet(r) determination of cpi (rp per unit) yself(i) determination of self employed income (current ) fyself(i) determination of self employed real income (base year rp) ywage(i) determination of labor income (current ) fywage(i) determination of labor real income (base year rp) ycap(i) determination of capital and land income (current ) fycap(i) determination of capital and land real income (base year rp) yinfr(i) determination of infrastructure income (current ) fyinfr(i) determination of infrastructure real income (base year rp) wtrdet determination of transfers from abroad (current ) gtrdet determination of government transfers (current ) fwtrdet determination of real transfers from abroad (base year rp) fgtrdet determination of government real transfers (base year rp) yhdef(ty,r) definition of regional income (current ) fyhdef(ty,r) definition of regional real income (base year rp) mean(r) mean per capita income determination (base year rp) meanc(r) determination of mean per capita consumption (base year rp) les(i,r) linear expenditure system (current ) iddet(i) allocation of gross fixed investment (units) dstdet(i) allocation of stock changes (units) hbudget(r) household budget constraint (current ) gbudget government budget constraint (current ) fddef(i) definition of domestic final demands (units) export(i) downward sloping export demand curves (units) equil(i) market clearing conditions (units) margdet determination of total trade margins (current ) fbudget rest of the world budget constraint (current ) invsav investment savings equality (current ) utildef(r) definition of regional utility (utils) ; $Stitle equations of the model * objective function qdep00(i).. deprec00(i) =e= pk00(i)*k(i)*depp(i) + sum(r$ri(r,i), pls00(r)*ls(i)*depl(i)) ; qdep(i).. deprec(i) =e= pk(i)*k(i)*depp(i) + sum(r$ri(r,i), pls(r)*ls(i)*depl(i)) ; qgdp.. ogdp =e= sum(i, pv00(i)*v(i)+deprec00(i) ) ; qcns.. ocns =e= sum((i,r), pc00(i)*ch(i,r) ) ; qgfi.. ogfi =e= sum(i, pc00(i)*id(i) + deprec(i)*idshr*sum(j, pc00(j)*aid(j) )/sum(j, pc(j)*aid(j) ) ) ; qchs.. ochs =e= sum(i, pq00(i)*dst(i) + deprec(i)*dstshr*sum(j, pc00(j)*aid(j) )/sum(j, pc(j)*aid(j) ) ) ; qinv.. oinv =e= ogfi + ochs ; qexp.. oexp =e= sum(ie, ex(ie)*pq00(ie)*(1 + trmx(ie)) ) ; qimp.. oimp =e= sum(i, (m(i)*pim00(i)*(1 + trmm(i)))$im(i) + nm(i)*pnm00(i) ) ; qgdpmp.. ogdpmp =e= ocns + sum(i, pc00(i)*cg(i) ) + oinv + oexp - oimp ; * production equations valueq(i).. q(i)*pq(i) =e= x(i)*px(i) + (m(i)*pm(i))$im(i) ; prodq(sc).. q(sc) =e= aq(sc)*(deltaq(sc)*x(sc)**(-rhoq(sc)) + (1-deltaq(sc))*m(sc)**(-rhoq(sc)))** (-1/rhoq(sc)) ; firstq(sc).. x(sc) =e= m(sc)*(pm(sc)*deltaq(sc)/(px(sc)*(1-deltaq(sc))))**sigmaq(sc) ; pmdef(im).. pm(im) =e= pim(im)*(1 + trmm(im) + tfm(im) + taum(im)) ; supply(i)$(not sc(i)).. q(i) =e= x(i) + m(i)$im(i) ; taumdet(im)$(not sc(im)).. pm(im) =e= px(im) ; valuex(i).. x(i)*px(i) =e= g(i)*pg(i) + z(i)*pz(i) ; prodx(i).. x(i) =e= ax(i)*(deltax(i)*z(i)**(-rhox(i)) + (1-deltax(i))*g(i)**(-rhox(i)))**(-1/rhox(i)) ; firstx(i).. z(i) =e= g(i)*(pg(i)*deltax(i)/(pz(i)*(1-deltax(i))))**sigmax(i) ; valuez(i).. z(i)*pz(i) =e= v(i)*pv(i) + n(i)*pn(i) ; prodz(i).. z(i) =e= az(i)*(deltaz(i)*v(i)**(-rhoz(i)) + (1-deltaz(i))*n(i)**(-rhoz(i)))** (-1/rhoz(i)) ; firstz(i).. v(i) =e= n(i)*(pn(i)*deltaz(i)/(pv(i)*(1-deltaz(i))))**sigmaz(i) ; valuen(i).. n(i)*pn(i) =e= nd(i)*pnd(i) + nm(i)*pnm(i) ; prodn(i).. n(i) =e= an(i)*(deltan(i)*nd(i)**(-rhon(i)) + (1-deltan(i))*nm(i)**(-rhon(i))) **(-1/rhon(i)) ; firstn(i).. nd(i) =e= nm(i)*(deltan(i)*pnm(i)/((1-deltan(i))*pnd(i)))**sigman(i) ; pnddet(i).. pnd(i) =e= sum(j, a(j,i)*pq(j)*(1 + tnd(j)) ) ; pnmdet(i).. pnm(i) =e= sum(j, am(j,i)*pim(j)*(1 + trmm(j) + tnm(j)) ) ; values(i).. s(i)*ps(i) =e= k(i)*pk(i) + ls(i)*sum(r$ri(r,i), pls(r)) ; prods(i).. s(i) =e= as(i)*(deltas(i)*k(i)**(-rhos(i)) + ((1-deltas(i))*ls(i)**(-rhos(i)))$(not si(i)))** (-1/rhos(i)) ; firsts(i)$(not si(i)).. k(i) =e= ls(i)*(sum(r$ri(r,i), pls(r))*deltas(i)/(pk(i)*(1-deltas(i))))**sigmas(i) ; valuev(i).. v(i)*pv(i) =e= lw(i)*sum(r$ri(r,i), w(r)) + ps(i)*s(i) ; prodv(i).. v(i) =e= av(i)*(deltav(i)*s(i)**(-rhov(i)) + (1 - deltav(i))*lw(i)**(-rhov(i)))** (-1/rhov(i)) ; firstv(i).. s(i) =e= lw(i)*(sum(r$ri(r,i), w(r))*deltav(i)/(ps(i)*(1-deltav(i))))**sigmav(i) ; lmclear.. totlab =e= sum(i$(not sa(i)), lw(i) + ls(i) ) ; pcdet(i).. pc(i) =e= pq(i)*(1 + tfd(i) + trmd(i) ) ; cpidet(r).. cpi(r)*sum(i, ch(i,r)) =e= sum(i, pc(i)*ch(i,r)) ; * income generation yself(i).. y("yself",i) =e= sum(r$ri(r,i), pls(r) )*ls(i)*(1 - tw(i)) ; ywage(i).. y("ywage",i) =e= sum(r$ri(r,i), w(r))*lw(i)*(1 - tw(i)) ; ycap(i).. y("ycap",i) =e= pk(i)*k(i)*(1 - thetak(i))*(1 - tk(i)) ; yinfr(i).. y("yinfr",i) =e= pg(i)*g(i)*(1 - thetai) ; gtrdet.. gtr("ynonp") =e= (gtra + gtrb)/indefl*sum(i, pv(i)*v(i))/sum(i, pv00(i)*v00(i)) ; wtrdet.. wtr("ynonp") =e= (nct + nfi)*(er00/er)/usdefl*sum(i, pv(i)*v(i))/sum(i, pv00(i)*v00(i)) ; fgtrdet.. fgtr("ynonp") =e= (gtra + gtrb)/indefl ; fwtrdet.. fwtr("ynonp") =e= (nct + nfi)*(er00/er)/usdefl ; fyself(i).. fy("yself",i) =e= sum(r$ri(r,i), pls00(r) )*ls(i)*(1 - tw(i)) ; fywage(i).. fy("ywage",i) =e= sum(r$ri(r,i), w00(r))*lw(i)*(1 - tw(i)) ; fycap(i).. fy("ycap",i) =e= pk00(i)*k(i)*(1 - thetak(i))*(1 - tk(i)) ; fyinfr(i).. fy("yinfr",i) =e= pg00(i)*g(i)*(1 - thetai) ; yhdef(ty,r).. yh(ty,r) =e= sum(i, ayi(i,r)*y(ty,i)) + ayt(r)*(gtr(ty) + wtr(ty)) ; fyhdef(ty,r).. fyh(ty,r) =e= sum(i, ayi(i,r)*fy(ty,i)) + ayt(r)*(fgtr(ty) + fwtr(ty)) ; mean(r).. ym(r)*pop(r) =e= sum(ty, fyh(ty,r) ) ; meanc(r).. log(mc(r)) =e= alpha(r) + beta(r)*log(ym(r)) ; les(i,r).. pc(i)*ch(i,r) =e= pop(r)*(pc(i)*gamma(i,r) + ac(i,r)*(mc(r) - sum(j, pc00(j)*gamma(j,r) ) )* prod(j, (pc(j)/pc00(j))**ac(j,r) ) ) ; iddet(i).. id(i) =e= aid(i)*idshr*invtot ; dstdet(i).. dst(i) =e= adst(i)*dstshr*invtot ; * domestic budget constraints hbudget(r).. savh(r) + sum(i, pc(i)*ch(i,r)) =e= sum(ty, yh(ty,r)) ; gbudget.. sum(i, pq(i)*cg(i)) + sum(ty, gtr(ty)) + savg =e= sum(i, sum(j, am(j,i)*tnm(j)*pim(j))*nm(i) + sum(j, a(j,i)*pq(j)*tnd(j))*nd(i) + ((tfm(i)+taum(i))*pim(i)*m(i))$im(i) + tw(i)*sum(r$ri(r,i), w(r))*lw(i) + sum(r$ri(r,i), pls(r))*ls(i)*tw(i) + tk(i)*pk(i)*k(i)*(1-thetak(i)) + tfd(i)*pq(i)*sum(r, ch(i,r)) + tfd(i)*pq(i)*id(i) ) ; * market clearing fddef(i).. fd(i) =e= sum(r, ch(i,r)) + id(i) + cg(i) ; export(ie).. ex(ie) =e= exscale*aex(ie)*(er00*pie(ie)/(pq(ie)*(1 + trmx(ie))))**eta(ie) ; margdet.. marg*sum(ss, pq(ss)) =e= sum(i, trmd(i)*pq(i)*fd(i)) + sum(ie, trmx(ie)*pq(ie)*ex(ie)) + sum(i, (pim(i)*trmm(i)*m(i))$im(i) + sum(j, am(j,i)*pim(j)*trmm(j) )*nm(i) ) ; equil(i).. q(i) + dsa(i) =e= fd(i) + sum(j, a(i,j)*nd(j)) + ex(i)$ie(i) + dst(i) + marg$ss(i) + sum(j, g(j))$si(i) ; fbudget.. (savf/usdefl)*(er00/er)*sum(i, pc(i)*aid(i) )/sum(i, pc00(i)*aid(i) ) + sum(ie, pq(ie)*(1 + trmx(ie))*ex(ie) ) + sum(ty, wtr(ty)) =e= sum(im, pim(im)*m(im)) + sum(i, sum(j, am(j,i)*pim(j) )*nm(i) ) ; * savings and investments invsav.. sum(r, savh(r)) + (savf/usdefl)*(er00/er)*sum(i, pc(i)*aid(i))/sum(i, pc00(i)*aid(i)) + savg + thetai*sum(i, pg(i)*g(i)) + sum(i, thetak(i)*pk(i)*k(i) ) =e= sum(i, dst(i)*pq(i) + id(i)*pc(i)) + sum(si, pq(si))*sum(i, g(i)) ; utildef(r).. util(r)*pop(r) =e= prod(i, (ch(i,r)-gamma(i,r)*pop(r))**ac(i,r)) ; obj.. utility =e= psi*((1/mu*sum(r, pop(r)*util(r)**mu))$mu + (sum(r, pop(r)*log(util(r))))$(not mu)) + ksi*invtot ; $Stitle variable initialization * bounds for variables y.fx("ynonp",i) = 0 ; wtr.fx(li) = 0 ; gtr.fx(li) = 0 ; fy.fx("ynonp",i)= 0 ; fwtr.fx(li) = 0 ; fgtr.fx(li) = 0 ; thetai.fx = thetai.l ; ls.lo(i) = .001 ; ls.fx(i)$(not ls.l(i)) = 0 ; * initial values for variables util.l(r) = 10 ; utility.l = 10 ; Option decimals = 5 ; Display pc.l, pop, gamma, ac, mc.l ; x.lo(i) = .001 ; g.lo(i) = .001 ; z.lo(i) = .001 ; v.lo(i) = .001 ; n.lo(i) = .001 ; fd.lo(i) = .001 ; lw.lo(i) = .001 ; nd.lo(i) = .001 ; nm.lo(i) = .001 ; m.lo(sc) = .001 ; s.lo(i) = .001 ; px.lo(i) = .001 ; pg.lo(i) = .001 ; pz.lo(i) = .001 ; pv.lo(i) = .001 ; pn.lo(i) = .001 ; pc.lo(i) = .001 ; pq.lo(i) = .001 ; w.lo(r) = .001 ; pnd.lo(i) = .001 ; pnm.lo(i) = .001 ; pm.lo(i) = .001 ; ps.lo(i) = .001 ; pk.lo(i) = .001 ; pls.lo(r) = .001 ; mc.lo(r) = .001 ; ym.lo(r) = .001 ; $Stitle model definitions Model ganges basic version of the india cge / infalloc, wdet, valueq, prodq, firstq, supply, pmdef, taumdet valuex, prodx, firstx, valuez, prodz, firstz, valuen, prodn firstn, pnddet, pnmdet, values, prods, firsts, valuev, prodv firstv, lmclear, pcdet, cpidet, yself, ywage, ycap, yinfr gtrdet, wtrdet, fyself, fywage, fycap, fyinfr, fgtrdet, fwtrdet yhdef, fyhdef, mean, meanc, les, iddet, dstdet, hbudget fddef, export, equil, margdet, fbudget, invsav, utildef, obj / ; Model ganges0 base year version with tracking indicators / utildef, obj, valueq, prodq, firstq, pmdef, supply, taumdet, valuex, prodx, firstx, valuez prodz, firstz, valuen, prodn, firstn, pnddet, pnmdet, values, prods, firsts valuev, prodv, firstv, lmclear, pcdet, cpidet, yself, ywage, ycap, yinfr gtrdet, wtrdet, fyself, fywage, fycap, fyinfr, fgtrdet, fwtrdet, yhdef fyhdef, mean, meanc, les, iddet, dstdet, hbudget, fddef, export, equil margdet, fbudget, invsav, qdep00, qdep, qgdp, qcns, qgfi, qchs, qinv, qexp qimp, qgdpmp / ; Option limcol = 0 ; $Stitle base model closure g.fx(i) = g.l(i) ; w.fx(r) = dw(r) ; ls.fx(sa) = ls.l(sa) ; savf.fx = 47.9 ; ax.fx(i) = ax.l(i) ; exscale.fx = 1 ; tnd.fx(i) = tnd.l(i) ; tnm.fx(i) = tnm.l(i) ; tfd.fx(i) = tfd.l(i) ; tfm.fx(i) = tfm.l(i) ; tk.fx(i) = tk.l(i) ; tw.fx(i) = tw.l(i) ; taum.fx(sc) = 0 ; taum.fx(i)$(not im(i)) = 0 ; beta.fx(r) = beta.l(r) ; lambda.fx(r) = lambda.l(r) ; m.fx(i)$(not sc(i)) = m.l(i) ; Solve ganges0 using cns; ax0(i) = ax.l(i) ; exscale0 = exscale.l ; beta0(r) = beta.l(r) ; objgrt.. dumgrt =e= wgdp*sqr(ogdpmp/gdppr - gdpgrt) + wcns*sqr(ocns/cnspr - cnsgrt) + winv*sqr(oinv/invpr - invgrt) + wexp*sqr(oexp/exppr - expgrt) + wimp*sqr(oimp/imppr - impgrt) ; infalloc(i).. g(i) =e= ratinf*dg(i)/sum(j, dg(j))*sum(si, x(si)) ; wdet(r).. w(r)*dcpi(r) =e= lambda(r)*cpi(r)*dw(r) ; Model track ganges with tracking option / infalloc, wdet, valueq, prodq, firstq, supply, pmdef, taumdet, valuex, prodx firstx, valuez, prodz, firstz, valuen, prodn, firstn, pnddet, pnmdet, values prods, firsts, valuev, prodv, firstv, lmclear, pcdet, cpidet, yself, ywage ycap, yinfr, gtrdet, wtrdet, fyself, fywage, fycap, fyinfr, fgtrdet, fwtrdet yhdef, fyhdef, mean, meanc, les, iddet, dstdet, hbudget, fddef, export, equil margdet, fbudget, invsav, objgrt, qdep00, qdep, qgdp, qcns, qgfi, qchs, qinv qexp, qimp, qgdpmp, utildef, obj / ;