shovmge.gms : The economic effects of UK membership in the EC
Miller-Spencer - economic effects of UK membership
Reference:
- Miller, M H, and Spencer, J E, The Static Economic Effects of the UK joining the EEC: A General Equilibrium Approach. R.E.Stud, 1975.
Large Model of Types: MPSGE mcp
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$TITLE Miller-Spencer - economic effects of UK membership (SHOVMGE,SEQ=153)
$Ontext
Miller-Spencer - economic effects of UK membership
Miller, M H, and Spencer, J E, The Static Economic Effects of the UK
joining the EEC: A General Equilibrium Approach. R.E.Stud, 1975.
$Offtext
SET R Regions /UK, EC, CW, RW/,
F Primary factors /K, L/,
G Goods / X, Z /,
SC Scenarios /BENCH Benchmark replication,
POST_NT Integration without transfer,
POST_T Integration with tariff transfer.'
GFT Global free trade/
NON_EC(R) Regions which are not the EC /UK, CW, RW/;
ALIAS (R,RR), (R,RT);
TABLE ESUB(R,*) Elasticities (top level and by aggregate)
Top X Z
UK 0.1 3.0 3.0
EC 0.1 3.0 3.0
CW 0.1 3.0 3.0
RW 0.1 3.0 3.0
TABLE LSHR(R,G) Labor value shares (Table I of MS)
X Z
UK 0.64 0.35
EC 0.64 0.45
CW 0.60 0.32
RW 0.65 0.41;
PARAMETER FSHR(G,R,F) Factor value shares in production;
FSHR(G,R,"L") = LSHR(R,G);
FSHR(G,R,"K") = 1 - LSHR(R,G);
TABLE CREF(G,R,R) Reference consumption levels (Tables VIIa and VIIb of MS)
UK EC CW RW
X.UK 26.9811 1.5601 0.5619 5.9015
X.EC 0.8046 80.9840 0.1577 9.6285
X.CW 0.0461 0.0127 5.8316 0.3753
X.RW 2.3914 6.9002 0.7337 190.1027
Z.UK 0.5354 0.0367 0.0028 0.0829
Z.EC 0.0494 1.9401 0.0008 0.1221
Z.CW 0.1782 0.1586 0.1856 0.3932
Z.RW 0.5156 1.2882 0.0311 1.9737
TABLE PREF(R,*) Reference prices. (Table III of MS)
X Z K L
UK 0.3301 0.6117 0.2730 0.2135
EC 0.5661 2.0740 0.5165 0.3850
CW 0.7064 0.6436 0.3340 0.3950
RW 0.6367 1.0020 0.4685 0.8438
TABLE TREF(G,R,R) Reference tariff rates (Table II of MS.)
UK EC CW RW
X.UK 0.150 0.050 0.125
X.EC 0.150 0.200 0.125
X.CW 0.150 0.125
X.RW 0.150 0.150 0.200
Z.UK 0.200 0.200
Z.EC 0.200
Z.CW 0.200 0.200
Z.RW 0.200
TABLE T_NT(G,R,R) Tariff rates - no transfer (Table II of MS.)
UK EC CW RW
X.UK 0.200 0.125
X.EC 0.200 0.125
X.CW 0.150 0.150 0.125
X.RW 0.150 0.150 0.200
Z.UK 0.200
Z.EC 0.200
Z.CW 0.200 0.200 0.200
Z.RW 0.200 0.200
TABLE T_TR(G,R,R,R) Tariff rates with transfers (Table II of MS.)
UK.UK UK.EC EC.EC CW.CW RW.RW
X.UK 0.200 0.125
X.EC 0.200 0.125
X.CW 0.105 0.045 0.150 0.125
X.RW 0.105 0.045 0.150 0.200
Z.UK 0.200
Z.EC 0.200
Z.CW 0.020 0.180 0.200 0.200
Z.RW 0.020 0.180 0.200
PARAMETER T(G,R,R,R,SC) Tariff rates by scenario;
T(G,R,RR,RR,"BENCH") = TREF(G,R,RR);
T(G,R,RR,RR,"POST_NT") = T_NT(G,R,RR);
T(G,R,RR,RT,"POST_T") = T_TR(G,R,RR,RT);
T(G,R,RR,RT,"GFT") = 0;
PARAMETER SREF(G,R,R) Benchmark Subsidies.
/ Z.UK.UK 0.20
Z.EC.UK 0.20 /;
PARAMETER PCREF(G,R,RR) Benchmark consumption price index;
PCREF(G,R,RR) = PREF(R,G) * (1 + TREF(G,R,RR)) * (1 - SREF(G,R,RR));
PARAMETER TBAL(*,R) TRADE BALANCE CHECK;
TBAL(G,R) = SUM(RR, PREF(R,G) * CREF(G,R,RR) * (1 - SREF(G,R,RR))) -
SUM(RR, PREF(RR,G) * CREF(G,RR,R) * (1 - SREF(G,RR,R)));
TBAL("TOTAL",R) = SUM(G, TBAL(G,R));
DISPLAY TBAL;
PARAMETER S(G,R,RR,SC) Subsidy rates by scenario;
S(G,R,RR,"BENCH") = SREF(G,R,RR);
PARAMETER E(F,R) Factor endowments,
FD(F,G,R) Reference factor demand,
YREF(G,R) Reference output level
DREF(G,R) Reference demand;
DREF(G,R) = SUM(RR, PCREF(G,RR,R) * CREF(G,RR,R));
YREF(G,R) = SUM(RR, CREF(G,R,RR));
FD(F,G,R) = FSHR(G,R,F) * YREF(G,R) * PREF(R,G) / PREF(R,F);
E(F,R) = SUM(G, FD(F,G,R));
$ONTEXT
$MODEL:MILLER
$SECTORS:
U(R) Y(G,R) D(G,R)
$COMMODITIES:
PU(R) PC(G,R) W(F,R) P(G,R)
$CONSUMERS:
RA(R)
$PROD:Y(G,R) s:1.0
O:P(G,R) Q:YREF(G,R)
I:W(F,R) Q:FD(F,G,R) P:PREF(R,F)
$PROD:D(G,R) s:ESUB(R,G)
O:PC(G,R) Q:DREF(G,R)
I:P(G,RR) Q:CREF(G,RR,R) P:PCREF(G,RR,R)
+ A:RA(RR) T:(-S(G,RR,R,SC))
+ A:RA(R) T:(T(G,RR,R,R,SC)*(1-S(G,RR,R,SC)))
+ A:RA("EC") T:(T(G,RR,R,"EC",SC)*(1-S(G,RR,R,SC)))$NON_EC(R)
$PROD:U(R) s:1
O:PU(R) Q:(SUM(G, DREF(G,R)))
I:PC(G,R) Q:DREF(G,R)
$DEMAND:RA(R) s:1
E:W(F,R) Q:E(F,R)
D:PU(R)
$OFFTEXT
PARAMETER EV(R,SC) EQUIVALENT VARIATION (%);
$SYSINCLUDE mpsgeset MILLER
W.L(F,R) = PREF(R,F);
P.L(G,R) = PREF(R,G);
LOOP(SC,
$INCLUDE MILLER.GEN
SOLVE MILLER USING MCP;
EV(R,SC) = 100 * (U.L(R)-1);
);
DISPLAY EV;
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