dyncge.gms : A Recursive-Dynamic Standard CGE Model


This model is featured in the following book.


  • Hosoe, N, Gasawa, K, and Hashimoto, H, Textbook of Computable General Equilibrium Modeling: Programming and Simulations, 2nd Edition. University of Tokyo Press, Tokyo, Japan, 2015.

Small Model of Type : NLP

Category : GAMS Model library

Main file : dyncge.gms

$Title A Recursive-Dynamic Standard CGE Model  (DYNCGE,SEQ=410)
This model is featured in the following book.

Hosoe, N., Gasawa, K., Hashimoto, H. Textbook of Computable General
Equilibrium Modeling: Programming and Simulations, 2nd Edition,
University of Tokyo Press. (in Japanese)
option limrow=0, limcol=0;
$offsymxref offsymlist

* ===============================================================
* Definition of sets for suffix ---------------------------------
* ===============================================================
Set     u       SAM entry       /AGR, LMN, HMN, SRV,
                                CAP, LAB, HOH,
                                GOV, INV, EXT,
                                IDT, TRF/
        i(u)    goods           /AGR, LMN, HMN, SRV/
        h(u)    factor          /CAP, LAB/
        h_mob(h) mobile factor  /LAB/
        h_imm(h) immobile factor /CAP/
        t       time            /0*30/;

Alias (u,v), (i,j), (h,k);

* ===============================================================
* Data for Dynamics ---------------------------------------------
* ===============================================================
Scalar  ror     rate of return of capital
        dep     depreciation rate
        pop     population growth rate
        zeta    elasticity parameter for investment allocation;

ror     =0.05;
dep     =0.04;
pop     =0.02;
zeta    =1;

* ===============================================================
* SAM Data
* ===============================================================
Table   SAM(u,v) Social accounting matrix for 2005 [bil. JPY]
        AGR             LMN             HMN             SRV
AGR     1643.017        7560.896        237.841         1409.202
LMN     1485.854        10803.527       15330.764       18597.270
HMN     1071.954        4277.721        113390.269      48734.424
SRV     2002.380        11406.260       50513.476       177675.714
IDT     433.854         4068.616        9418.058        20103.917
TRF     149.278         2866.853        1749.385        8.575
CAP     5082.506        7042.697        21058.821       163045.396
LAB     1435.010        8942.365        42510.123       222732.700
EXT     2092.569        23796.669       30982.559       10837.256

+       IDT             TRF             CAP             LAB
HOH                                     196229.420      275620.198
GOV     34024.445       4774.091

+       HOH             GOV             INV             EXT
AGR     3563.257        0.000           919.745         62.464
LMN     32220.169       329.469         802.026         1196.525
HMN     27648.678       4.931           34979.803       55083.516
SRV     234243.865      90707.177       79169.426       17426.156
GOV     52243.041
INV     121930.608      0.000                           -6059.608
* Source: compiled by N. Hosoe, based on the I/O table for 2005
* http://www.stat.go.jp/english/data/io/io05.htm

Parameter       SAMGAP(u) gaps between row sums and column sums;
Display SAMGAP;

* ===============================================================
* Loading the initial values ------------------------------------
* ===============================================================
* Base year values
        Y00(j)          composite factor
        F00(h,j)        factor input
        X00(i,j)        intermediate input
        Z00(j)          gross output
        Xp00(i)         household consumption
        Xg00(i)         government consumption
        Xv00(i)         investment demand
        E00(i)          exports
        M00(i)          imports
        Q00(i)          Armington's composite good
        D00(i)          domestic good
        Sp00            private savings
        Td00            direct tax
        Tz00(j)         production tax
        Tm00(j)         import tariff
        III00           composite investment
        II00(j)         sectoral investment
        KK00(j)         capital stock
        CC00            composite consumption or felicity
        FF00(h)         factor endowment
        Sf00            foreign savings in US dollars
        tauz00(i)       production tax rate
        taum00(i)       import tariff rate

* Base run value
        Y0(j,t)         composite factor
        F0(h,j,t)       factor input
        X0(i,j,t)       intermediate input
        Z0(j,t)         gross output
        Xp0(i,t)        household consumption
        Xv0(i,t)        investment demand
        E0(i,t)         exports
        M0(i,t)         imports
        Q0(i,t)         Armington's composite good
        D0(i,t)         domestic good
        Sp0(t)          private savings
        Td0(t)          direct tax
        Tz0(j,t)        production tax
        Tm0(j,t)        import tariff
        III0(t)         composite investment
        II0(j,t)        sectoral investment
        KK0(j,t)        capital stock
        CC0(t)          composite consumption or felicity
        FF0(h,t)        factor endowment
        pf0(h,j,t)      factor price
        py0(j,t)        composite factor price
        pz0(j,t)        gross output price
        pq0(i,t)        Armington's composite good price
        pe0(i,t)        export price in local currency
        pm0(i,t)        import price in local currency
        pd0(i,t)        domestic good price
        pk0(t)          composite investment goods price
        epsilon0(t)     exchange rate
        PRICE0(t)       numeraire price

* Exogenous variables
        Xg0(i,t)        government consumption
        Sf0(t)          foreign savings in US dollars
        pWe(i)          export price in US dollars
        pWm(i)          import price in US dollars
        tauz(i)         production tax rate
        taum(i)         import tariff rate

* for result reporting

        Y1(j,t)         composite factor
        F1(h,j,t)       factor input
        X1(i,j,t)       intermediate input
        Z1(j,t)         gross output
        Xp1(i,t)        household consumption
        Xv1(i,t)        investment demand
        E1(i,t)         exports
        M1(i,t)         imports
        Q1(i,t)         Armington's composite good
        D1(i,t)         domestic good
        Sp1(t)          private saving
        Td1(t)          direct tax
        Tz1(j,t)        production tax
        Tm1(i,t)        import tariff
        FF1(h,t)        initial sectoral factor uses
        II1(j,t)        sectoral investment
        III1(t)         composite investment
        KK1(j,t)        sectoral capital stock
        CC1(t)          utility
        tauz1(i,t)      production tax rates
        taum1(i,t)      import tariff rates
        pz1(j,t)        gross output price
        pd1(j,t)        domestic good price
        pm1(j,t)        import price
        pe1(j,t)        export price
        pq1(j,t)        Armington's composite good price
        pf1(h,j,t)      factor price
        py1(j,t)        composite factor price
        epsilon1(t)     foreign exchange rate
        pk1(t)          capital good price
        PRICE1(t)       numeraire price;

Td00    =SAM("GOV","HOH");
Tz00(j) =SAM("IDT",j);
Tm00(j) =SAM("TRF",j);
Y00(j)  =sum(h, F00(h,j));
Z00(j)  =Y00(j) +sum(i, X00(i,j));
M00(i)  =SAM("EXT",i);
Xp00(i) =SAM(i,"HOH");
CC00    =sum(i, Xp00(i));
FF00(h) =SAM("HOH",h);
E00(i)  =SAM(i,"EXT");
D00(i)  =(1+tauz00(i))*Z00(i)-E00(i);
Q00(i)  =(1+taum00(i))*M00(i)+D00(i);
Sf00    =SAM("INV","EXT");

* ===============================================================
* Adjusting Investment in the SAM for the Assumed BAU Growth Path
* ===============================================================
Scalar  III_ASS required investment for the assumed growth
        III_SAM observed investment in the SAM
        adj     III_ASS vs. III_SAM [>1:more than actual];

III_ASS  =(pop +dep)/ror*FF00("CAP");
III_SAM  =sum(i, SAM(i,"INV"));
adj     =III_ASS/III_SAM;

* Adjusting investment level
Xv00(i) =SAM(i,"INV")*adj;

* Reallocating the gap made by the inv. adjustment to gov. cons.
Xg00(i) =SAM(i,"GOV")-(Xv00(i)-SAM(i,"INV"));

* Computing the direct tax revenue that balances the gov. budget
Td00    =sum(i, Xg00(i)) -sum(i, Tz00(i) +Tm00(i));

* Computing the household sav. that balances the household budget
Sp00    =sum(h, FF00(h)) -(sum(i, Xp00(i)) +Td00);

III00   =sum(i, Xv00(i));
II00(j) =(Sp00 +Sf00)*F00("CAP",j)/sum(i,F00("CAP",i));
KK00(j) =F00("CAP",j)/ror;

* ===============================================================
* Computing the BAU path
* ===============================================================
Y0(j,t)         =Y00(j)         *(1+pop)**(ord(t)-1);
F0(h,j,t)       =F00(h,j)       *(1+pop)**(ord(t)-1);
X0(i,j,t)       =X00(i,j)       *(1+pop)**(ord(t)-1);
Z0(j,t)         =Z00(j)         *(1+pop)**(ord(t)-1);
Xp0(i,t)        =Xp00(i)        *(1+pop)**(ord(t)-1);
Xv0(i,t)        =Xv00(i)        *(1+pop)**(ord(t)-1);
E0(i,t)         =E00(i)         *(1+pop)**(ord(t)-1);
M0(i,t)         =M00(i)         *(1+pop)**(ord(t)-1);
Q0(i,t)         =Q00(i)         *(1+pop)**(ord(t)-1);
D0(i,t)         =D00(i)         *(1+pop)**(ord(t)-1);
FF0(h,t)        =FF00(h)        *(1+pop)**(ord(t)-1);
III0(t)         =III00          *(1+pop)**(ord(t)-1);
II0(j,t)        =II00(j)        *(1+pop)**(ord(t)-1);
KK0(j,t)        =KK00(j)        *(1+pop)**(ord(t)-1);
CC0(t)          =CC00           *(1+pop)**(ord(t)-1);
Sp0(t)          =Sp00           *(1+pop)**(ord(t)-1);
Td0(t)          =Td00           *(1+pop)**(ord(t)-1);
Tz0(j,t)        =Tz00(j)        *(1+pop)**(ord(t)-1);
Tm0(i,t)        =Tm00(i)        *(1+pop)**(ord(t)-1);
pf0(h,j,t)      =1;
py0(j,t)        =1;
pz0(j,t)        =1;
pq0(i,t)        =1;
pe0(i,t)        =1;
pm0(i,t)        =1;
pd0(i,t)        =1;
pk0(t)          =1;
epsilon0(t)     =1;
PRICE0(t)       =1;

* Setting exogenous variables
Xg0(i,t)        =Xg00(i)        *(1+pop)**(ord(t)-1);
Sf0(t)          =Sf00           *(1+pop)**(ord(t)-1);
pWe(i)          =1;
pWm(i)          =1;
tauz(i)         =tauz00(i);
taum(i)         =taum00(i);

Display Y0,F0,X0,Z0,Xp0,Xv0,E0,M0,Q0,D0,Sp0,
* ===============================================================
* Calibration ---------------------------------------------------
* ===============================================================
Parameter       sigma(i)        elasticity of substitution
                psi(i)          elasticity of transformation
                eta(i)          substitution elasticity parameter
                phi(i)          transformation elasticity parameter;

psi(i)  =2;

Parameter       alpha(i)        share par. in composite cons. func.
                a               scale par. in composite cons. func.
                beta(h,j)       share par. in production func.
                b(j)            scale par. in production func.
                ax(i,j)         intermediate input requirement coeff.
                ay(j)           composite fact. input req. coeff.
                lambda(i)       investment demand share
                iota            scale par. in comp. inv. prod. func.
                deltam(i)       share par. in Armington func.
                deltad(i)       share par. in Armington func.
                gamma(i)        scale par. in Armington func.
                xid(i)          share par. in transformation func.
                xie(i)          share par. in transformation func.
                theta(i)        scale par. in transformation func.
                ssp             propensity to save;

alpha(i)        =Xp00(i)/sum(j, Xp00(j));
a               =CC00/prod(j, Xp00(j)**alpha(j));

beta(h,j)       =F00(h,j)/sum(k, F00(k,j));
b(j)            =Y00(j)/prod(h, F00(h,j)**beta(h,j));

ax(i,j)         =X00(i,j)/Z00(j);
ay(j)           =Y00(j) /Z00(j);

lambda(i)       =Xv00(i)/sum(j, Xv00(j));
iota            =III00  /prod(i, Xv00(i)**lambda(i));

deltam(i)       =(1+taum00(i))*M00(i)**(1-eta(i))
deltad(i)       =D00(i)**(1-eta(i))/((1+taum00(i))*M00(i)**(1-eta(i))
gamma(i)        =Q00(i)/(deltam(i)*M00(i)**eta(i)

xie(i)          =E00(i)**(1-phi(i))
xid(i)          =D00(i)**(1-phi(i))
theta(i)        =Z00(i)/(xie(i)*E00(i)**phi(i)

ssp             =Sp00/(sum((h,j), F00(h,j)) -Td00);

Display alpha,a,beta,b,ax,ay,lambda,deltam,deltad,gamma,xie,
* ===============================================================
* Defining model system -----------------------------------------
* ===============================================================
Variable        Y(j)            composite factor
                F(h,j)          factor input
                X(i,j)          intermediate input
                Z(j)            gross domestic output
                Xp(i)           household consumption
                Xg(i)           government consumption
                Xv(i)           investment demand
                E(i)            exports
                M(i)            imports
                Q(i)            Armington's composite good
                D(i)            domestic good
                FF(h)           factor endowments
                pf(h,j)         factor price
                py(j)           composite factor price
                pz(j)           supply price of gross domestic output
                pq(i)           Armington's composite good price
                pe(i)           export price in local currency
                pm(i)           import price in local currency
                pd(i)           domestic good price
                pk              composite investment goods price
                epsilon         exchange rate
                Sp              private savings
                Sf              foreign savings
                Td              direct tax
                Tz(j)           production tax
                Tm(i)           import tariff
                KK(j)           capital stock
                II(j)           sectoral investment
                III             composite investment
                PRICE           numeraire price
                CC              composite consumption;

Equation        eqpy(j)         composite factor prod. func.
                eqF(h,j)        factor demand function
                eqX(i,j)        intermediate demand function
                eqY(j)          composite factor demand function
                eqpzs(j)        unit cost function
                eqTd            direct tax revenue function
                eqTz(j)         production tax revenue function
                eqTm(i)         import tariff revenue function
                eqXv(i)         investment demand function
                eqSp            private saving function
                eqXp(i)         household demand function
                eqpe(i)         world export price equation
                eqpm(i)         world import price equation
                eqepsilon       balance of payments
                eqpqs(i)        Armington function
                eqM(i)          import demand function
                eqD(i)          domestic good demand function
                eqpzd(i)        transformation function
                eqE(i)          export supply function
                eqDs(i)         domestic good supply function
                eqpqd(i)        market clearing cond. for comp. good
                eqpf1(h_mob)    mobile factor market clearing cond.
                eqpf2(h_mob,i,j) mobile factor market clearing cond.
                eqpf3(j)        immobile factor market clearing cond.
                eqpk            composite inv. goods mar. clear. cond.
                eqIII           composite inv. goods production func.
                eqII(j)         evolution of target capital stocks
                eqCC            composite consumption production func.
                eqPRICE         numeraire price;
* ===============================================================
* Model equations
* ===============================================================
*[domestic production] -
* composite factor production func.                  (Cobb-Douglas)
eqpy(j)..       Y(j) =e= b(j)*prod(h, F(h,j)**beta(h,j));

* factor demand function                             (Cobb-Douglas)
eqF(h,j)..      F(h,j) =e= beta(h,j)*py(j)*Y(j)/pf(h,j);

* intermediate input demand function                    (Leontief)
eqX(i,j)..      X(i,j)=e= ax(i,j)*Z(j);

* composite factor demand function                      (Leontief)
eqY(j)..        Y(j) =e= ay(j)*Z(j);

* unit price of gross output                            (Leontief)
eqpzs(j)..      pz(j) =e= ay(j)*py(j) +sum(i, ax(i,j)*pq(i));

*[government behavior] -
* lump sum direct tax revenue
eqTd..          Td =e= sum(i, pq(i)*Xg(i))
                       -sum(i, Tm(i) +Tz(i));
* production tax revenue
eqTz(j)..       Tz(j) =e= tauz(j)*pz(j)*Z(j);
* import tariff revenue
eqTm(i)..       Tm(i) =e= taum(i)*pm(i)*M(i);

*[investment behavior] -
* composite investment production function
eqXv(i)..       Xv(i) =e= lambda(i)*pk*sum(j, II(j))/pq(i);

*[savings] ----------
* savings function
eqSp..          Sp =e=   ssp*(sum((h,j), pf(h,j)*F(h,j))-Td);

*[household consumption] --                   (Cobb-Douglas)
eqXp(i)..       Xp(i) =e= alpha(i)*(sum((h,j), pf(h,j)*F(h,j))
                          -Sp -Td) /pq(i);
*[international trade] -
eqpe(i)..       pe(i) =e= epsilon*pWe(i);
eqpm(i)..       pm(i) =e= epsilon*pWm(i);

* BOP constraint
eqepsilon..     sum(i, pWe(i)*E(i)) +Sf
                        =e=     sum(i, pWm(i)*M(i));

*[Armington function] --
* Armington's composite good production function        (CES)
eqpqs(i)..      Q(i) =e= gamma(i)*(deltam(i)*M(i)**eta(i)

* import demand function                                (CES)
eqM(i)..        M(i) =e= (gamma(i)**eta(i)*deltam(i)*pq(i)

* domestic good demand function                         (CES)
eqD(i)..        D(i) =e= (gamma(i)**eta(i)*deltad(i)*pq(i)

*[transformation function] --
* gross domestic output disaggregation function         (CET)
eqpzd(i)..      Z(i)  =e= theta(i)*(xie(i)*E(i)**phi(i)

*export supply function                                 (CET)
eqE(i)..        E(i)  =e= (theta(i)**phi(i)*xie(i)*(1+tauz(i))

*domestic good supply function                          (CET)
eqDs(i)..       D(i)  =e= (theta(i)**phi(i)*xid(i)*(1+tauz(i))

*[market clearing condition]
*Arminton's composite good market
eqpqd(i)..      Q(i)  =e= Xp(i)+Xg(i)+Xv(i)+sum(j, X(i,j));

*labor market: quantity
                sum(j, F(h_mob,j)) =e= FF(h_mob);

*labor market: price
                pf(h_mob,j) =e= pf(h_mob,i);

*capital market
                F("CAP",j) =e= ror*KK(j);

*investment goods market
eqpk..        sum(j, II(j)) =e= III;

*[dynamic equations]
*composite investment good market clearing condition
eqIII..        III =e= iota*prod(i, Xv(i)**lambda(i));

*sectoral investment allocation
eqII(j)..       pk*II(j) =e= pf("CAP",j)**zeta*F("CAP",j)
                /sum(i, pf("CAP",i)**zeta*F("CAP",i))
                *(Sp +epsilon*Sf);
*felicity function
eqCC..  CC      =e= a*prod(i, Xp(i)**alpha(i));

* Price level [numeraire]
eqPRICE..       PRICE   =e= sum(j, pq(j)*Q00(j)/sum(i,Q00(i)));

* ---------------------------------------------------------------

* ===============================================================
* Initializing variables ----------------------------------------
* ===============================================================
Y.l(j)          =Y00(j);
F.l(h,j)        =F00(h,j);
X.l(i,j)        =X00(i,j);
Z.l(j)          =Z00(j);
Xp.l(i)         =Xp00(i);
Xv.l(i)         =Xv00(i);
E.l(i)          =E00(i);
M.l(i)          =M00(i);
Q.l(i)          =Q00(i);
D.l(i)          =D00(i);
pf.l(h,j)       =1;
py.l(j)         =1;
pz.l(j)         =1;
pq.l(i)         =1;
pe.l(i)         =1;
pm.l(i)         =1;
pd.l(i)         =1;
pk.l            =1;
epsilon.l       =1;
Sp.l            =Sp00;
Td.l            =Td00;
Tz.l(j)         =Tz00(j);
Tm.l(i)         =Tm00(i);
FF.l(h)         =FF00(h);
III.l           =III00;
II.l(j)         =II00(j);
* ---------------------------------------------------------------

* ---------------------------------------------------------------
* Numeraire

* Initial factor endowments and exogenous variables
FF.fx(h_mob)= FF00(h_mob);

Xg.fx(i)        = Xg00(i);
Sf.fx           = Sf00;
* ===============================================================
* Defining and solving the model --------------------------------
* ===============================================================
Model dyncge /all/;
Solve dyncge maximizing CC using nlp;

* Terminate before scenario runs when running under GAMS SQA Suite
$if not x%gams.jt%==x $exit
Option limrow=0, limcol=0, solprint=off, solvelink=%solvelink.loadlibrary%;
* ===============================================================
* Simulation Runs: Abolition of Import Tariffs
* ===============================================================
* Scenario:

Solve dyncge maximizing CC using nlp;

* storing results -------------------------

Y1(j,t)         =Y.l(j) ;
F1(h,j,t)       =F.l(h,j);
X1(i,j,t)       =X.l(i,j);
Z1(j,t)         =Z.l(j) ;
Xp1(i,t)        =Xp.l(i);
Xv1(i,t)        =Xv.l(i);
E1(i,t)         =E.l(i) ;
M1(i,t)         =M.l(i) ;
Q1(i,t)         =Q.l(i) ;
D1(i,t)         =D.l(i) ;
Sp1(t)          =Sp.l   ;
Td1(t)          =Td.l   ;
Tz1(j,t)        =Tz.l(j);
Tm1(i,t)        =Tm.l(i);
FF1(h,t)        =FF.l(h);
II1(j,t)        =II.l(j);
III1(t)         =III.l;
KK1(j,t)        =KK.l(j);
CC1(t)          =CC.l;
tauz1(i,t)      =tauz(i);
taum1(i,t)      =taum(i);
pf1(h,j,t)      =pf.l(h,j);
py1(j,t)        =py.l(j);
pz1(j,t)        =pz.l(j);
pd1(j,t)        =pd.l(j);
pe1(j,t)        =pe.l(j);
pm1(j,t)        =pm.l(j);
pq1(j,t)        =pq.l(j);
pk1(t)          =pk.l   ;
epsilon1(t)     =epsilon.l;
PRICE1(t)       =PRICE.l;
* -------------------------------------------

* updating the state variables --------------

FF.fx(h_mob)    = FF.l(h_mob)*(1+pop);
KK.fx(j)        = (1-dep)*KK.l(j)+II.l(j);
Xg.fx(i)        = Xg0(i,t+1);
Sf.fx           = Sf0(t+1);
* ---------------------------------------------------------------

* ===============================================================
* Aftermath Computation
* ===============================================================
* Display of changes --------------------------------------------

* changes
        dY(j,t)         change of composite factor [%]
        dF(h,j,t)       change of factor input [%]
        dX(i,j,t)       change of intermediate input [%]
        dZ(j,t)         change of gross output [%]
        dXp(i,t)        change of household consumption [%]
        dXv(i,t)        change of investment demand [%]
        dE(i,t)         change of exports [%]
        dM(i,t)         change of imports [%]
        dQ(i,t)         change of Armington's composite good [%]
        dD(i,t)         change of domestic good [%]
        dSp(t)          change of private saving [%]
        dTd(t)          change of direct tax [%]
        dTz(j,t)        change of production tax [%]
        dTm(i,t)        change of import tariff [%]
        dFF(h,t)        change of initial sectoral factor uses [%]
        dKK(j,t)        change of sectoral capital stock [%]
        dII(j,t)        change of sectoral investment [%]
        dIII(t)         change of composite investment [%]
        dKK(j,t)        change of sectoral capital stock [%]
        dKK(j,t)        change of changes of KK from the BAU [%]
        dKK(j,t)        change of growth rate of KK [%]
        dCC(t)          change of utility [%]
        dCC(t)          change of changes of CC from the BAU [%]
        dCC(t)          change of growth rate of CC [%]
        dpz(j,t)        change of gross output price [%]
        dpd(j,t)        change of domestic good price [%]
        dpm(j,t)        change of import price [%]
        dpe(j,t)        change of export price [%]
        dpq(j,t)        change of Armington's comp. good price [%]
        dpf(h,j,t)      change of factor price [%]
        dpy(j,t)        change of composite factor price [%]
        depsilon(t)     change of foreign exchange rate [%]
        dpk(t)          change of capital good price [%]

* BAU growth rate
        gY0(j,t)        growth of composite factor [%]
        gF0(h,j,t)      growth of factor input [%]
        gX0(i,j,t)      growth of intermediate input [%]
        gZ0(j,t)        growth of gross output [%]
        gXp0(i,t)       growth of household consumption [%]
        gXv0(i,t)       growth of investment demand [%]
        gE0(i,t)        growth of exports [%]
        gM0(i,t)        growth of imports [%]
        gQ0(i,t)        growth of Armington's composite good [%]
        gD0(i,t)        growth of domestic good [%]
        gSp0(t)         growth of private saving [%]
        gTd0(t)         growth of direct tax [%]
        gTz0(j,t)       growth of production tax [%]
        gTm0(i,t)       growth of import tariff [%]
        gFF0(h,t)       growth of initial sectoral factor uses [%]
        gKK0(j,t)       growth of sectoral capital stock [%]
        gII0(j,t)       growth of sectoral investment [%]
        gIII0(t)        growth of composite investment [%]
        gCC0(t)         growth of growth rate of CC [%]

* C/F growth rate
        gY1(j,t)        growth of composite factor [%]
        gF1(h,j,t)      growth of factor input [%]
        gX1(i,j,t)      growth of intermediate input [%]
        gZ1(j,t)        growth of gross output [%]
        gXp1(i,t)       growth of household consumption [%]
        gXv1(i,t)       growth of investment demand [%]
        gE1(i,t)        growth of exports [%]
        gM1(i,t)        growth of imports [%]
        gQ1(i,t)        growth of Armington's composite good [%]
        gD1(i,t)        growth of domestic good [%]
        gSp1(t)         growth of private saving [%]
        gTd1(t)         growth of direct tax [%]
        gTz1(j,t)       growth of production tax [%]
        gTm1(i,t)       growth of import tariff [%]
        gFF1(h,t)       growth of initial sectoral factor uses [%]
        gKK1(j,t)       growth of sectoral capital stock [%]
        gII1(j,t)       growth of sectoral investment [%]
        gIII1(t)        growth of composite investment [%]
        gCC1(t)         growth of growth rate of CC [%]

        EV(t)           equivalent variations [current]
        EV_TTL          total EV [discounted sum];

dY(j,t)      $Y0(j,t)       =(Y1(j,t)       /Y0(j,t)        -1)*100;
dF(h,j,t)    $F0(h,j,t)     =(F1(h,j,t)     /F0(h,j,t)      -1)*100;
dX(i,j,t)    $X0(i,j,t)     =(X1(i,j,t)     /X0(i,j,t)      -1)*100;
dZ(j,t)      $Z0(j,t)       =(Z1(j,t)       /Z0(j,t)        -1)*100;
dXp(i,t)     $Xp0(i,t)      =(Xp1(i,t)      /Xp0(i,t)       -1)*100;
dXv(i,t)     $Xv0(i,t)      =(Xv1(i,t)      /Xv0(i,t)       -1)*100;
dE(i,t)      $E0(i,t)       =(E1(i,t)       /E0(i,t)        -1)*100;
dM(i,t)      $M0(i,t)       =(M1(i,t)       /M0(i,t)        -1)*100;
dQ(i,t)      $Q0(i,t)       =(Q1(i,t)       /Q0(i,t)        -1)*100;
dD(i,t)      $D0(i,t)       =(D1(i,t)       /D0(i,t)        -1)*100;
dSp(t)       $Sp0(t)        =(Sp1(t)        /Sp0(t)         -1)*100;
dTd(t)       $Td0(t)        =(Td1(t)        /Td0(t)         -1)*100;
dTz(j,t)     $Tz0(j,t)      =(Tz1(j,t)      /Tz0(j,t)       -1)*100;
dTm(i,t)     $Tm0(i,t)      =(Tm1(i,t)      /Tm0(i,t)       -1)*100;
dFF(h,t)     $FF0(h,t)      =(FF1(h,t)      /FF0(h,t)       -1)*100;
dII(j,t)     $II0(j,t)      =(II1(j,t)      /II0(j,t)       -1)*100;
dIII(t)      $III0(t)       =(III1(t)       /III0(t)        -1)*100;
dKK(j,t)     $KK0(j,t)      =(KK1(j,t)      /KK0(j,t)       -1)*100;
dCC(t)       $CC0(t)        =(CC1(t)        /CC0(t)         -1)*100;
dpz(j,t)     $pz0(j,t)      =(pz1(j,t)      /pz0(j,t)       -1)*100;
dpd(j,t)     $pd0(j,t)      =(pd1(j,t)      /pd0(j,t)       -1)*100;
dpm(j,t)     $pm0(j,t)      =(pm1(j,t)      /pm0(j,t)       -1)*100;
dpe(j,t)     $pe0(j,t)      =(pe1(j,t)      /pe0(j,t)       -1)*100;
dpq(j,t)     $pq0(j,t)      =(pq1(j,t)      /pq0(j,t)       -1)*100;
dpf(h,j,t)   $pf0(h,j,t)    =(pf1(h,j,t)    /pf0(h,j,t)     -1)*100;
dpy(j,t)     $py0(j,t)      =(py1(j,t)      /py0(j,t)       -1)*100;
depsilon(t)  $epsilon0(t)   =(epsilon1(t)   /epsilon0(t)    -1)*100;
dpk(t)       $pk0(t)        =(pk1(t)        /pk0(t)         -1)*100;

gY0(j,t+1)   $Y0(j,t)     =(Y0(j,t+1)     /Y0(j,t)        -1)*100;
gF0(h,j,t+1) $F0(h,j,t)   =(F0(h,j,t+1)   /F0(h,j,t)      -1)*100;
gX0(i,j,t+1) $X0(i,j,t)   =(X0(i,j,t+1)   /X0(i,j,t)      -1)*100;
gZ0(j,t+1)   $Z0(j,t)     =(Z0(j,t+1)     /Z0(j,t)        -1)*100;
gXp0(i,t+1)  $Xp0(i,t)    =(Xp0(i,t+1)    /Xp0(i,t)       -1)*100;
gXv0(i,t+1)  $Xv0(i,t)    =(Xv0(i,t+1)    /Xv0(i,t)       -1)*100;
gE0(i,t+1)   $E0(i,t)     =(E0(i,t+1)     /E0(i,t)        -1)*100;
gM0(i,t+1)   $M0(i,t)     =(M0(i,t+1)     /M0(i,t)        -1)*100;
gQ0(i,t+1)   $Q0(i,t)     =(Q0(i,t+1)     /Q0(i,t)        -1)*100;
gD0(i,t+1)   $D0(i,t)     =(D0(i,t+1)     /D0(i,t)        -1)*100;
gSp0(t+1)    $Sp0(t)      =(Sp0(t+1)      /Sp0(t)         -1)*100;
gTd0(t+1)    $Td0(t)      =(Td0(t+1)      /Td0(t)         -1)*100;
gTz0(j,t+1)  $Tz0(j,t)    =(Tz0(j,t+1)    /Tz0(j,t)       -1)*100;
gTm0(i,t+1)  $Tm0(i,t)    =(Tm0(i,t+1)    /Tm0(i,t)       -1)*100;
gFF0(h,t+1)  $FF0(h,t)    =(FF0(h,t+1)    /FF0(h,t)       -1)*100;
gII0(j,t+1)  $II0(j,t)    =(II0(j,t+1)    /II0(j,t)       -1)*100;
gIII0(t+1)   $III0(t)     =(III0(t+1)     /III0(t)        -1)*100;
gKK0(j,t+1)  $KK0(j,t)    =(KK0(j,t+1)    /KK0(j,t)       -1)*100;
gCC0(t+1)    $CC0(t)      =(CC0(t+1)      /CC0(t)         -1)*100;

gY1(j,t+1)   $Y1(j,t)     =(Y1(j,t+1)     /Y1(j,t)        -1)*100;
gF1(h,j,t+1) $F1(h,j,t)   =(F1(h,j,t+1)   /F1(h,j,t)      -1)*100;
gX1(i,j,t+1) $X1(i,j,t)   =(X1(i,j,t+1)   /X1(i,j,t)      -1)*100;
gZ1(j,t+1)   $Z1(j,t)     =(Z1(j,t+1)     /Z1(j,t)        -1)*100;
gXp1(i,t+1)  $Xp1(i,t)    =(Xp1(i,t+1)    /Xp1(i,t)       -1)*100;
gXv1(i,t+1)  $Xv1(i,t)    =(Xv1(i,t+1)    /Xv1(i,t)       -1)*100;
gE1(i,t+1)   $E1(i,t)     =(E1(i,t+1)     /E1(i,t)        -1)*100;
gM1(i,t+1)   $M1(i,t)     =(M1(i,t+1)     /M1(i,t)        -1)*100;
gQ1(i,t+1)   $Q1(i,t)     =(Q1(i,t+1)     /Q1(i,t)        -1)*100;
gD1(i,t+1)   $D1(i,t)     =(D1(i,t+1)     /D1(i,t)        -1)*100;
gSp1(t+1)    $Sp1(t)      =(Sp1(t+1)      /Sp1(t)         -1)*100;
gTd1(t+1)    $Td1(t)      =(Td1(t+1)      /Td1(t)         -1)*100;
gTz1(j,t+1)  $Tz1(j,t)    =(Tz1(j,t+1)    /Tz1(j,t)       -1)*100;
gTm1(i,t+1)  $Tm1(i,t)    =(Tm1(i,t+1)    /Tm1(i,t)       -1)*100;
gFF1(h,t+1)  $FF1(h,t)    =(FF1(h,t+1)    /FF1(h,t)       -1)*100;
gII1(j,t+1)  $II1(j,t)    =(II1(j,t+1)    /II1(j,t)       -1)*100;
gIII1(t+1)   $III1(t)     =(III1(t+1)     /III1(t)        -1)*100;
gKK1(j,t+1)  $KK1(j,t)    =(KK1(j,t+1)    /KK1(j,t)       -1)*100;
gCC1(t+1)    $CC1(t)      =(CC1(t+1)      /CC1(t)         -1)*100;

* Welfare measure: Hicksian equivalent variations ---------------
EV(t)           =(CC1(t)-CC0(t))/a/prod(i, (alpha(i)/1)**alpha(i));
EV_TTL          =sum(t, EV(t)/(1+ror)**(ord(t)-1));
* ===============================================================
* GDX file output
* ===============================================================
execute_unload "result.gdx"; 
* ---------------------------------------------------------------
* end of model --------------------------------------------------
* ---------------------------------------------------------------