Department of Applied Economic Analysis at the University of Las Palmas de G.C. (Canary Islands, Spain), 13th – 17th March, 2023
Instructors:
Prof. Thomas Rutherford
Prof. Christoph Böhringer
Ass. Prof. Casiano Manrique
Responses to global challenges such as climate change, international trade conflicts, or disruptions in global supply chains should be based on the systematic impact assessment of alternative policy options. The economic analysis of policies affecting markets in multiple countries requires both data and theory. We provide computational tools developed in the GAMS modeling language to extract the GTAP data base of the global economy. We use empirical GTAP data for computable general equilibrium (CGE) analysis facilitated by MPSGE as a meta-language to implement CGE models in a compact non-algebraic manner. The workshop will demonstrate the practical usefulness of CGE analysis by means of policy-relevant applications to carbon tariffs in climate policy, disruptive trade policies, and supply chain shocks
The explicit algebraic formulation of general equilibrium conditions and the parameterization of functional forms to characterize technologies and preferences can become very tedious and error-prone in particular for more complex production and consumption patterns. MPSGE (Mathematical Programming System for General Equilibrium) provides a short-hand non-algebraic representation for general equilibrium models releasing economists from the need to write down complicated equilibrium conditions explicitly as well as from the need to set up tedious calibration routines for the parameterization of demand and supply functions. The workshop will show in detail how to transform algebraic CGE models into non-algebraic MPSGE syntax which can substantially lower the entry barriers and time cost of CGE analysis n both – algebraic and non-algebraic – cases, CGE models are stated as mixed complementarity problems (MCP) which link equilibrium conditions as nonlinear inequalities with complementary non-negative economic variables. The fundamental strength of CGE models implemented as MCP is the ability to handle corner solutions and regime shifts that might be central to the analysis of discrete production decisions (e.g. firm location) or the selection of international value chains (e.g. switching of trade links).
Part 1: GTAPinGAMS
Part 2: Economic Equilibrium and Mixed Complementarity Problems (MCP)
Part 3: MPSGE Implementation of Algebraic General Equilibrium Models
Part 4: A Canonical Global Trade Model based on GTAPinGAMS
Part 5: Applications to the Economic Analysis of Global Challenges
Unilateral carbon pricing and border carbon adjustments. Impact assessment of international trade wars, Hedging policy against supply chain disruptions.
Enrollment is limited to 20 participants to assure efficient, close interaction. For further information please check:
The registration deadline is March, 1, 2023.
