Haqiqi, Iman and Bahalou, Marziyeh and Shamsaee, Arezoo (2017): An Economic General Equilibrium Model for Evaluation of Production Support Policies in Developing Countries.
PDF
MPRA_paper_95865.pdf Download (1MB) |
Abstract
This paper introduces a Computable General Equilibrium (CGE) model for the evaluation of production support policies in developing countries. It is a multi-sector, multi-market, multi-household model appropriate for what-if policy analysis. We describe the main aspects of the model. The model assumes small open economy, imperfect capital mobility, imperfect substitution between imported and domestic commodity, nested CES structure in production, nested CES structure in consumption, and heterogeneity of domestic products in one category. We consider transport margin, wholesale margin, import tariffs, import subsidy, production tax, value added tax, goods and services tax, and other transfer payments. We calibrate the model based on the 2001 Micro Consistent Matrix of Iran. The initial validation tests approve the validity of the model.
Item Type: | MPRA Paper |
---|---|
Original Title: | An Economic General Equilibrium Model for Evaluation of Production Support Policies in Developing Countries |
English Title: | An Economic General Equilibrium Model for Evaluation of Production Support Policies in Developing Countries |
Language: | English |
Keywords: | Computable General Equilibrium, tax policy, industrial policy, production support, Iran |
Subjects: | C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C68 - Computable General Equilibrium Models D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D58 - Computable and Other Applied General Equilibrium Models O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O25 - Industrial Policy Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy |
Item ID: | 95865 |
Depositing User: | Iman Haqiqi |
Date Deposited: | 04 Sep 2019 18:32 |
Last Modified: | 29 Sep 2019 06:40 |
References: | Armington, Paul S. 1969. "A Theory of Demand for Products Distinguished by Place of Production" IMF Staff Papers, Palgrave Macmillan, vol. 16(1), pages 159-178, March. Bahador, A., & Haqiqi, I. (2015). Economic Effects of Petroleum Export Reduction in Iran: Financial Computable General Equilibrium Approach. Quarterly Journal of Monetary and Banking Researches, 8(24), 251–284. Beckman, J., Hertel, T., & Tyner, W. (2011). Validating energy-oriented CGE models. Energy Economics, 33(5), 799-806. Böhringer, C., & Rutherford, T. F. (2000). Decomposing the cost of Kyoto: a global CGE analysis of multilateral policy impacts. Böhringer, C., & Rutherford, T. F. (2005). Integrating bottom-up into top-down: a mixed complementarity approach. ZEW-Centre for European Economic Research Discussion Paper, (05-028). Böhringer, C., & Rutherford, T. F. (2010). The costs of compliance: a CGE assessment of Canada’s policy options under the Kyoto protocol. World Economy, 33(2), 177-211. Böhringer, C., Löschel, A., & Rutherford, T. F. (2006). Efficiency gains from" what"-flexibility in climate policy an integrated CGE assessment. The Energy Journal, 405-424. Böhringer, C., Rutherford, T. F., & Wiegard, W. (2003). Computable general equilibrium analysis: Opening a black box. Burfisher, M. E. (2017). Introduction to computable general equilibrium models. Cambridge University Press. De Melo, J., & Robinson, S. (1989). Product differentiation and the treatment of foreign trade in computable general equilibrium models of small economies. Journal of International Economics, 27(1-2), 47-67. Robinson, S. (1991). Devarajan, S., Lewis, J., & Robinson, S. (1986). A bibliography of computable general equilibrium (CGE) models applied to developing countries (No. 1557-2016-133185). Dixon, P. B., & Jorgenson, D. (Eds.). (2012). Handbook of computable general equilibrium modeling. Newnes. Robinson, S., Kilkenny, M., & Hanson, K. (1990). The USDA/ERS computable general equilibrium (CGE) model of the United States (No. 1486-2018-6356). Dixon, P. B., & Parmenter, B. R. (1996). Computable general equilibrium modelling for policy analysis and forecasting. Handbook of computational economics, 1, 3-85. Dixon, P., Johnson, M., & Rimmer, M. (2008). Reducing Illegal Migrants in the United States: A Dynamic CGE Analysis. CoPS/IMPACT General Paper G-183. Centre of Policy Studies, Monash University . Haqiqi, I., & Bahador, A. (2015). Investigating Economic Effects of Oil Export Reduction: A Financial Computable General Equilibrium Approach, MPRA Paper 95784, University Library of Munich, Germany. Haqiqi, I., & Bahaloo Horeh, M. (2013). Impacts of Cut in Oil Exports on Sectoral Employment of Skilled and Unskilled Labor: A CGE Approach International Iranian Economic Association Conference, IIEA, 2013, Istanbul, Turkey. Haqiqi, I., & Bahaloo Horeh, M. (2014a). A CGE Model for Labor Migration Analysis Using Labor Micro Consistent Matrix, 22nd International Input-Output Conference & 4th Edition of the International School of I-O Analysis,14-18 July 2014, Lisbon, Portugal. Haqiqi, I., & Bahaloo Horeh, M. (2014b). Dynamic CGE Modeling of Interest Rate Subsidies: An Application of Financial SAM, EcoMod2014, International Conference on Economic Modeling, Bali, Indonesia, July 16-18, 2014. Haqiqi, I., & Bahalou Horeh, M. (2013). Macroeconomic Impacts of Export Barriers in a Dynamic CGE Model. Journal of Money and Economy, 8(3), 117–150. Haqiqi, I., & Bahalou Horeh, M. (2015). A General Equilibrium Analysis of Unskilled Labor Entry and Skilled Labor Exit in Iran. The Economic Research, 15(3), 67–89. Haqiqi, I., & Mortazavi Kakhaki, M. (2012). The Impact of Redistribution of Opportunities on Income Inequality: A CGE Approach. Journal of Economic Modeling Research, 2(7): 51-73. Haqiqi, I., Aqanazari, H., & Sharzei, G. A. (2013). Natural Resources Revenue Allocation: A Dynamic General Equilibrium Approach. Journal of Economic Modeling Research, 3(11), 49–76. Haqiqi, I., Bahaloo Horeh, M. & Ghaedi, M. (2014). A CGE Analysis of Welfare and Sectoral Impacts of Removing Interest Rate Subsidies: A Model Based on Financial SAM and Flow of Fund Accounts, 22nd International Input-Output Conference & 4th Edition of the International School of I-O Analysis, 14-18 July 2014, Lisbon, Portugal. Haqiqi, I., Manzoor, D., & Aghababaei, M. E. (2013). Sectoral Economic Impacts of Electricity Efficiency Improvements: A Computable General Equilibrium Approach. Journal of Planning and Budgeting, 17(4), 25–44. Haqiqi, I., Shahi, Z., & Ismaili, M. (2017). Impact of Cash Subsidy Transfer in a Nonlinear Programming Model for Economic Input-Output Analysis, MPRA Paper 95783, University Library of Munich, Germany. Haqiqi, Iman and Mirian, Narges (2015): A Financial General Equilibrium Model for Assessment of Financial Sector Policies in Developing Countries. MPRA Paper 95841, University Library of Munich, Germany. Harberger, Arnold C. 1962. "The Incidence of the Corporation Income Tax," Journal of Political Economy, University of Chicago Press, vol. 70, pages 215. Hertel, T. W. (1990). General equilibrium analysis of US agriculture: What does it contribute?. Journal of Agricultural Economics Research, 42(1491-2016-130250). Hertel, T. W. (1998). Global trade analysis: modeling and applications. Cambridge university press. Hertel, T. W. (2002). Applied general equilibrium analysis of agricultural and resource policies. Handbook of agricultural economics, 2, 1373-1419. Hertel, T. W., & Tsigas, M. E. (1997). Structure of GTAP. Global Trade Analysis: modeling and applications, 13-73. Hertel, T., Hummels, D., Ivanic, M., & Keeney, R. (2007). How confident can we be of CGE-based assessments of Free Trade Agreements?. Economic Modelling, 24(4), 611-635. Lofgren, H., Harris, R. L., & Robinson, S. (2002). A standard computable general equilibrium (CGE) model in GAMS (Vol. 5). Intl Food Policy Res Inst. Taylor, L. (Ed.). (1990). Socially relevant policy analysis: Structuralist computable general equilibrium models for the developing world. MIT Press. Manzoor, D., & Bahaloo Horeh, M. (2015). Analyzing the Impact of Increasing Minimum Wage on Skilled and Unskilled Labor in Iran: A CGE Approach. Journal of Quantitative Economics, Volume 12, 3 (46). Manzoor, D., & Haqiqi, I. (2012). Impact of Energy Price Reform on Environmental Emissions; A Computable General Equilibrium Approach. Journal of Environmental Studies, 37(60): 1-12. Manzoor, D., & Haqiqi, I. (2013). Impacts of Energy Price Increase and Cash Subsidy Payments on Energy Demand. Journal of Trade Studies, 67(17), 101–124. Manzoor, D., Aghababaei, M. E., & Haqiqi, I. (2011). Rebound Effects Analysis of Electricity Efficiency Improvements in Iran: A Computable General Equilibrium Approach. Quarterly Energy Economics Review, 8(28), 1–23. Manzoor, D., Haqiqi, I., & Aghababaei, M. E. (2012). Decomposing Electricity Demand Elasticity in Iran: Computable General Equilibrium Approach. Biquarterly Journal of Economic Policy, 4(8), 91-112. Manzoor, D., Haqiqi, I., & Aghababaei, M. E. (2012). Modeling Dutch Disease in the Economy of Iran: A Computable General Equilibrium Approach. Quarterly Energy Economics Review, 8(31): 59-84. Manzoor, D., Haqiqi, I., & Aghababaei, M. E. (2013). Economic Impacts of Investment in the Electricity Industry: A CGE Comparison of Regulated and Free Markets. Quarterly Energy Economics Review, 9(35), 47–74. Manzoor, D., Shahmoradi, A., & Haqiqi, I. (2010). An Assessment of the Impact of Reducing Implicit and Explicit Energy Subsidies in Iran; Using a Computable General Equilibrium Model Based on a Modified Micro Consistent Matrix. Quarterly Energy Economics Review, 7(26): 21-54. Manzoor, D., Shahmoradi, A., & Haqiqi, I. (2012). An Analysis of Energy Price Reform: A CGE Approach. OPEC Energy Review, 36(1), 35–54. DOI: 10.1111/j.1753-0237.2011.00200.x Manzoor, D., & Haqiqi, I. (2013). Impacts of Energy Price Increase and Cash Subsidy Payments on Energy Demand, MPRA Paper 95826, University Library of Munich, Germany. Mortazavi Kakhaki, M., Haqiqi, I. & Mahdavi Adeli, M. (2013). Regional Equality of Opportunities and Income: A General Equilibrium Modeling for Iran , MPRA Paper 95822, University Library of Munich, Germany. Mortazavi Kakhaki, M., Haqiqi, I., & Mahdavi Adeli, M. H. (2013). Regional General Equilibrium Analysis on Impacts of Inequalities of Opportunities on Income Distribution. Journal of Regional Economics and Development, 5(20), 69–95. Robinson, S., & Roland-Holst, D. W. (1988). Macroeconomic structure and computable general equilibrium models. Journal of Policy Modeling, 10(3), 353-375. Rutherford Thomas F. 1998, “Economic Equilibrium Modeling with GAMS, An Introduction to GAMS/MCP and GAMS/MPSGE”, University of Colorado. Rutherford, Thomas F, 1999. "Applied General Equilibrium Modeling with MPSGE as a GAMS Subsystem: An Overview of the Modeling Framework and Syntax," Computational Economics, Society for Computational Economics, vol. 14(1-2), pages 1-46, October. Rutherford, Thomas F., 1995. "Extension of GAMS for complementarity problems arising in applied economic analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 19(8), pages 1299-1324, November. Shahmoradi, A., Haqiqi, I., & Zahedi, R. (2011). Impact Analysis of Energy Price Reform and Cash Subsidy Payment in Iran: A CGE Approach. Quarterly Journal of Economic Research and Policy, 19(57): 5-30. Sharifi, A., Khoshakhlagh, R., Bahaloo Horeh, M., & Sadeghi Hamedani, A. (2014). The Impact of Energy Price Increase on Employment: A CGE Approach. Journal of Economic Modeling Research, 4(16), 153-180. Other Related References: Haqiqi, I., & Bahalou, M. (2015). A General Equilibrium Analysis of Unskilled Labor Entry and Skilled Labor Exit in Iran, MPRA Paper 95781, University Library of Munich, Germany. Haqiqi, I., & Manzoor, D. (2012). Environmental Impacts of Phasing out Energy Subsidies, MPRA Paper 95688, University Library of Munich, Germany, revised 2016. Haqiqi, I., & Mortazavi Kakhaki, M. (2012). The Impact of Redistribution of Opportunities on Income Inequality: A CGE Approach, MPRA Paper 95819, University Library of Munich, Germany. Haqiqi, I., Aghanazari, H., & Sharzei, G. (2013). Natural Resources Revenue Allocation: A Dynamic General Equilibrium Approach, MPRA Paper 95785, University Library of Munich, Germany. Haqiqi, I., Manzoor, D., & Aghababaei, M. (2013). Impacts of Electricity Efficiency Improvements on Factors Market: A Computable General Equilibrium Approach, MPRA Paper 95825, University Library of Munich, Germany. Manzoor, D., & Haqiqi, I. (2012). Impact of Energy Price Reform on Environmental Emissions; A Computable General Equilibrium Approach, MPRA Paper 95818, University Library of Munich, Germany. Manzoor, D., Aghababaei, M., & Haqiqi, I. (2011). Rebound Effects Analysis of Electricity Efficiency Improvements in Iran: A Computable General Equilibrium Approach, MPRA Paper 95810, University Library of Munich, Germany. Manzoor, D., Haqiqi, I. & Aghababaei, M. (2012). Decomposing Electricity Demand Elasticity in Iran: Computable General Equilibrium Approach, MPRA Paper 95817, University Library of Munich, Germany. Manzoor, D., Haqiqi, I., & Aghababaei, M. (2013). Economic Impacts of Investment in the Electricity Industry: A CGE Comparison of Regulated and Free Markets, MPRA Paper 95823, University Library of Munich, Germany. Manzoor, D., Haqiqi, I., & Aghababaei, M. (2012). Modeling Dutch Disease in the Economy of Iran: A Computable General Equilibrium Approach, MPRA Paper 95821, University Library of Munich, Germany. Manzoor, D., Shahmoradi, A., & Haqiqi, I. (2010). An Assessment of the Impact of Reducing Implicit and Explicit Energy Subsidies in Iran; Using a Computable General Equilibrium Model Based on a Modified Micro Consistent Matrix, MPRA Paper 95808, University Library of Munich, Germany. Shahmoradi, A., Haqiqi, I., & Zahedi, R. (2011). Impact Analysis of Energy Price Reform and Cash Subsidy Payment in Iran: A CGE Approach, MPRA Paper 95809, University Library of Munich, Germany. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/95865 |
Available Versions of this Item
- An Economic General Equilibrium Model for Evaluation of Production Support Policies in Developing Countries. (deposited 04 Sep 2019 18:32) [Currently Displayed]