ganges.gms : Macroeconomic Framework for India
This general equilibrium model has been used to study the
adjustment policies of the Indian government in response to
internal and external shocks.
Reference:
- Mitra, P, and Tendulkar, S, Coping with Internal and External Exogenous Shocks: India. Tech. rep., The World Bank, 1986.
Large Model of Type: NLP
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$Title Macro-Economic Framework for India (GANGES,SEQ=97)
$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.
Mitra, P, and Tendulkar, S, Coping with Internal and External
Exogenous Shocks: 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) = .100 ;
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 iterlim = 1500 ;
*Option reslim = 1500 ;
$Stitle base model closure
g.fx(i) = g.l(i) ;
w.fx(r) = dw(r) ;
ls.fx(sa) = ls.l(sa) ;
savf.fx = 47.9 ;
ax.fx(i) = ax.l(i) ;
exscale.fx = 1 ;
tnd.fx(i) = tnd.l(i) ;
tnm.fx(i) = tnm.l(i) ;
tfd.fx(i) = tfd.l(i) ;
tfm.fx(i) = tfm.l(i) ;
tk.fx(i) = tk.l(i) ;
tw.fx(i) = tw.l(i) ;
taum.fx(sc) = 0 ;
taum.fx(i)$(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 nlp maximizing utility ;
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 / ;
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