GAMS 2.50.094 DOS Extended/C

12/10/99 14:41:30 PAGE 1

CGE2

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*INTRODUCTION ====================================================

In this file, the starting point is CGE1.

Intermediate demands are added. A modified SAM is presented.

The line before any new feature or modification starts with

"*++".

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*SETS ============================================================

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SETS

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AC global set (SAM accounts and other items)

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/

AGR-A

agricultural activity

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NAGR-A

non-agricultural activity

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AGR-C

agricultural commodity

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NAGR-C

non-agricultural commodity

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LAB

labor

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CAP

capital

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U-HHD

urban household

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R-HHD

rural household

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TOTAL

total account in SAM

/

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ACNT(AC) all elements in AC except total

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A(AC)

activities

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/AGR-A, NAGR-A/

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C(AC)

commodities

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/AGR-C, NAGR-C/

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F(AC)

factors

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/LAB, CAP/

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H(AC)

households

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/U-HHD, R-HHD/

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;

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ALIAS(AC,ACP); ALIAS(C,CP); ALIAS(F,FP);

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ACNT(AC) = YES; ACNT('TOTAL') = NO; ALIAS(ACNT,ACNTP);

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*PARAMETERS======================================================

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PARAMETERS

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ad(A)

efficiency parameter in the production fn for a

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alpha(F,A)

share of value-added to factor f in activity a

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beta(C,H)

share of household consumption spending on commodity c

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cpi

consumer price index

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cwts(C)

weight of commodity c in the CPI

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*++

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ica(C,A)

qnty of c as intermediate input per unit of activity a

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qfs(F)

supply of factor f

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shry(H,F)

share for household h in the income of factor f

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theta(A,C)

yield of output c per unit of activity a

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;

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*VARIABLES=======================================================

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VARIABLES

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P(C)

price of commodity c

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PA(A)

price of activity a

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*++

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PVA(A)

value-added (or net) price for activity a

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Q(C)

output level for commodity c

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QA(A)

level of activity a

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QF(F,A)

quantity demanded of factor f from activity a

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QH(C,H)

quantity consumed of commodity c by household h

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*++

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QINT(C,A)

qnty of commodity c as intermediate input to activity a

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WF(F)

price of factor f

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YF(H,F)

income of household h from factor f

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YH(H)

income of household h

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;

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*EQUATIONS=======================================================

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EQUATIONS

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*PRODUCTION AND COMMODITY BLOCK++++++++

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PRODFN(A)

Cobb-Douglas production function for activity a

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FACDEM(F,A)

demand for factor f from activity a

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*++

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INTDEM(C,A)

intermediate demand for commodity c from activity a

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OUTPUTFN(C)

output of commodity c

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PADEF(A)

price for activity a

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*++

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PVADEF(A)

value-added price for activity a

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*INSTITUTION BLOCK+++++++++++++++++++++

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FACTTRNS(H,F)

transfer of income from factor f to h-hold h

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HHDINC(H)

income of household h

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HHDEM(C,H)

consumption demand for household h & commodity c

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*SYSTEM CONSTRAINT BLOCK+++++++++++++++

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FACTEQ(F)

market equilibrium condition for factor f

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COMEQ(C)

market equilibrium condition for commodity c

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PNORM

price normalization

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;

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*PRODUCTION AND COMMODITY BLOCK++++++++

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PRODFN(A)..

QA(A) =E= ad(A)*PROD(F, QF(F,A)**alpha(F,A));

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*++

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FACDEM(F,A)..

WF(F) =E= alpha(F,A)*PVA(A)*QA(A) / QF(F,A);

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*++

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INTDEM(C,A)..

QINT(C,A) =E= ica(C,A)*QA(A);

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OUTPUTFN(C)..

Q(C) =E= SUM(A, theta(A,C)*QA(A));

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PADEF(A)..

PA(A) =E= SUM(C, theta(A,C)*P(C));

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*++

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PVADEF(A)..

PVA(A) =E= PA(A) - SUM(C, P(C)*ica(C,A));

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*INSTITUTION BLOCK+++++++++++++++++++++

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FACTTRNS(H,F)..

YF(H,F) =E= shry(H,F)*WF(F)*SUM(A, QF(F,A));

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HHDINC(H)..

YH(H) =E= SUM(F, YF(H,F));

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HHDEM(C,H)..

QH(C,H) =E= beta(C,H)*YH(H)/P(C);

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*SYSTEM CONSTRAINT BLOCK+++++++++++++++

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FACTEQ(F)..

SUM(A, QF(F,A)) =E= qfs(F);

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*++

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COMEQ('AGR-C')..

Q('AGR-C') =E=

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SUM(H, QH('AGR-C',H)) + SUM(A, QINT('AGR-C',A));

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PNORM..

SUM(C, cwts(C)*P(C)) =E= cpi;

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*MODEL===========================================================

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MODEL

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CGE2 Model with intermediate demand as new feature

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/ALL/

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;

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*SOCIAL ACCOUNTING MATRIX========================================

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TABLE SAM(AC,ACP) social accounting matrix

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AGR-A

NAGR-A

AGR-C

NAGR-C

LAB

CAP

U-HHD

R-HHD

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AGR-A

225

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NAGR-A

250

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AGR-C

60

40

50

75

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NAGR-C

40

60

100

50

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LAB

62

55

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CAP

63

95

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U-HHD

60

90

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R-HHD

57

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;

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PARAMETER

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tdiff(AC) column minus row total for account ac;

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SAM('TOTAL',ACNTP)

= SUM(ACNT, SAM(ACNT,ACNTP));

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SAM(ACNT,'TOTAL')

= SUM(ACNTP, SAM(ACNT,ACNTP));

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tdiff(ACNT)

= SAM('TOTAL',ACNT) - SAM(ACNT,'TOTAL');

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DISPLAY SAM, tdiff;

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*ASSIGNMENTS FOR PARAMETERS AND VARIABLES========================

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PARAMETERS

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*The following parameters are used to define initial values of

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*model variables.

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P0(C), PA0(A), PVA0(A), Q0(C), QA0(A), QF0(F,A), QH0(C,H), QINT0(C,A),

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WF0(F), YF0(H,F), YH0(H)

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;

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*PRODUCTION AND COMMODITY BLOCK++++++++

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P0(C)

= 1;

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PA0(A)

= 1;

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WF0(F)

= 1;

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*++

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PVA0(A)

= SUM(F, SAM(F,A)) / (SAM(A,'TOTAL')/PA0(A));

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Q0(C)

= SAM('TOTAL',C)/P0(C);

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QA0(A)

= SAM('TOTAL',A)/PA0(A);

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QF0(F,A)

= SAM(F,A)/WF0(F);

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*++

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QINT0(C,A)

= SAM(C,A)/P0(C);

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alpha(F,A)

= SAM(F,A) / SUM(FP, SAM(FP,A));

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ad(A)

= QA0(A) / PROD(F, QF0(F,A)**alpha(F,A));

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*++

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ica(C,A)

= (SAM(C,A)/P0(C)) / QA0(A);

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theta(A,C)

= (SAM(A,C)/P0(C)) / QA0(A);

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*INSTITUTION BLOCK+++++++++++++++++++++

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QH0(C,H)

= SAM(C,H)/P0(C);

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YF0(H,F)

= SAM(H,F);

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YH0(H)

= SAM('TOTAL',H);

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beta(C,H)

= SAM(C,H)/SUM(CP, SAM(CP,H));

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shry(H,F)

= SAM(H,F)/SAM('TOTAL',F);

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*SYSTEM CONSTRAINT BLOCK+++++++++++++++

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cwts(C)

= SUM(H, SAM(C,H)) / SUM((CP,H), SAM(CP,H));

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cpi

= SUM(C, cwts(C)*P0(C));

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qfs(F)

= SAM(F,'TOTAL')/WF0(F);

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*INITIALIZING ALL VARIABLES++++++++++++

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P.L(C)

= P0(C);

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PA.L(A)

= PA0(A);

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*++

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PVA.L(A)

= PVA0(A);

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Q.L(C)

= Q0(C);

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QA.L(A)

= QA0(A);

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QF.L(F,A)

= QF0(F,A);

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QH.L(C,H)

= QH0(C,H);

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*++

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QINT.L(C,A)

= QINT0(C,A);

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YF.L(H,F)

= YF0(H,F);

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WF.L(F)

= WF0(F);

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YH.L(H)

= YH0(H);

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;

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*DISPLAY+++++++++++++++++++++++++++++++

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DISPLAY

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ad, alpha, beta, cpi, cwts, ica, qfs, shry, theta,

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P.L, PA.L, PVA.L, Q.L, QA.L, QF.L, QH.L, QINT.L, WF.L, YF.L, YH.L

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;

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*SOLVE STATEMENT FOR BASE========================================

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*SOLVE CGE2 USING MCP;

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*REPORT SETUP AND BASE REPORT====================================

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*SET AND PARAMETERS FOR REPORTS++++++++

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SET

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SIM

simulations

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/

BASE

base simulation

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CINCR

increase in capital stock/

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PARAMETERS

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QFSCAPSIM(SIM)

capital supply for sim'on sim (experiment parameter)

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QFSREP(F,SIM)

supply of factor f for simulation sim (value used)

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PREP(C,SIM)

demander price for commodity c

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PAREP(A,SIM)

price of activity a

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PVAREP(A,SIM)

value-added price for activity a

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QREP(C,SIM)

output level for commodity c

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QAREP(A,SIM)

level of activity a

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QFREP(F,A,SIM)

demand for factor f from activity a

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QHREP(C,H,SIM)

consumption of commodity c by household h

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QINTREP(C,A,SIM)

qnty of commodity c as intermed. input for activity a

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WFREP(F,SIM)

price of factor f

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YFREP(H,F,SIM)

income of household h from factor f

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YHREP(H,SIM)

income of household h

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;

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QFSCAPSIM('BASE')

= qfs('CAP');

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QFSCAPSIM('CINCR')

= 1.1*qfs('CAP');

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DISPLAY QFSCAPSIM;

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LOOP(SIM,

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qfs('CAP') = QFSCAPSIM(SIM);

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SOLVE CGE2 USING MCP;

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QFSREP(F,SIM)

= qfs(F);

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PREP(C,SIM)

= P.L(C);

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PAREP(A,SIM)

= PA.L(A);

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PVAREP(A,SIM)

= PVA.L(A);

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QREP(C,SIM)

= Q.L(C);

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QAREP(A,SIM)

= QA.L(A);

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QFREP(F,A,SIM)

= QF.L(F,A);

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QHREP(C,H,SIM)

= QH.L(C,H);

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QINTREP(C,A,SIM)

= QINT.L(C,A);

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WFREP(F,SIM)

= WF.L(F);

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YFREP(H,F,SIM)

= YF.L(H,F);

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YHREP(H,SIM)

= YH.L(H);

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);

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OPTION QFREP:3:1:1, QHREP:3:1:1, YFREP:3:1:1;

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DISPLAY

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QFSREP, PREP, PAREP, PVAREP, QREP, QAREP, QFREP, QHREP, QINTREP,

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WFREP, YFREP, YHREP

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;