vonthmge.gms : A General Equilibrium Version of the von Thunen Model

Description

A General Equilibrium Version of the vonThunen Model

Reference

  • Mackinnon, J, A Technique for the Solution of Spatial Equilibrium Models. Journal of Regional Science 16, 3 (1976), 293-307.

Large Model of Types : MPSGE mcp


Category : GAMS Model library


Main file : vonthmge.gms

$TITLE  A General Equilibrium Version of the vonThunen Model (VONTHMGE,SEQ=156)
$Ontext

A General Equilibrium Version of the vonThunen Model


Mackinnon, J, A Technique for the Solution of Spatial Equilibrium
Models. Journal of Regional Science 16, 3 (1976), 293-307.

$Offtext

SET     R       REGIONS /R1*R12/,
        C       COMMODITIES /WHEAT, RICE, CORN, BARLEY/,
        H       HOUSEHOLDS /WORKER, OWNER, PORTER/;

SCALAR          LTOT    LABOR ENDOWMENT /30/,
                TRNS    TRANSPORT ENDOWMENT /20/;

PARAMETER       D(R)            DISTANCE TO REGION R,
                A(R)            AREA OF REGION R,
                T(C)            TRANSPORT REQUIREMENT
                PHI(C)          COST FUNCTION SCALE PARAMETER
                BETA(C)         COST FUNCTION SHARE PARAMETER,
                ALPHA(*,H)      DEMAND FUNCTION SHARE;

D(R) = 5 * (2 * ORD(R) - 1);
A(R) = 2 * 3.1415 * D(R);

TABLE  MISC(*,*)
                WHEAT   RICE    CORN    BARLEY  LEISURE
PHI             1       2       3       4
BETA            0.9     0.7     0.5     0.3
T               0.015   0.006   0.004   0.01
WORKER          0.2     0.3     0.1     0.3     0.1
OWNER           0.3     0.3     0.2     0.2
PORTER          0.6     0.2     0.1     0.1;

PHI(C)  = MISC("PHI",C);
BETA(C) = MISC("BETA",C);
T(C)    = MISC("T",C);
ALPHA(C,H) = MISC(H,C);
ALPHA("LEISURE",H) = MISC(H,"LEISURE");

$ONTEXT

$MODEL:VONTHUN

$SECTORS:
                Y(C,R)          ! OUTPUT LEVEL

$COMMODITIES:
                WL              ! WORKER WAGE
                WP              ! PORTER WAGE
                P(C)            ! MARKET PRICE
                PK(R)           ! RENTAL RATE

$CONSUMER:
                PORTER
                WORKER
                OWNER

$AUXILIARY:
                IP(R)           ! INTERVENTION PURCHASE (BOUNDS PRICE)


$PROD:Y(C,R)  s:0  a:1
                O:P(C)          Q:PHI(C)
                I:WL            Q:BETA(C) a:
                I:PK(R)         Q:(1-BETA(C)) a:
                I:WP            Q:(T(C)*D(R))

$DEMAND:PORTER s:1
        E:WP            Q:TRNS
        D:P(C)          Q:ALPHA(C,"PORTER")

$DEMAND:WORKER s:1
        E:WL            Q:LTOT
        D:P(C)          Q:ALPHA(C,"PORTER")
        D:WL            Q:ALPHA("LEISURE","PORTER")

$DEMAND:OWNER s:1
        E:PK(R)         Q:A(R)
        E:PK(R)         Q:-1    R:IP(R)
        D:P(C)          Q:ALPHA(C,"OWNER")

$CONSTRAINT:IP(R)
        PK(R) =G= 0.001 * WL;

$OFFTEXT
$SYSINCLUDE mpsgeset  VONTHUN

$INCLUDE VONTHUN.GEN
SOLVE VONTHUN USING MCP;