Impacts of Exogenous Shocks Using GTAP

durongkaveroj, wannaphong (2013): Impacts of Exogenous Shocks Using GTAP.

Abstract

This paper aims at investigating the sectoral impacts from exogenous shocks using CGE model through GTAP model which is implemented by GEMPACK. Three shocks include population growth in NAFTA region, Industrial Growth in Thailand, and Income Growth (measured by GDP) in NAFTA region. The result was very precise and benefit to policymakers corresponding to the objective of CGE model. According to the results, relatively, income growth in NAFTA region yields a highest welfare effect among all shocks which confirms the standard welfare functions.

• Item Type: MPRA Paper
• Language: English
• Keywords: CGE model, GTAP, exogenous shock
• Subjects: A - General Economics and Teaching > A1 - General Economics; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C68 - Computable General Equilibrium Models; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E65 - Studies of Particular Policy Episodes

References

Karen M. Huff and Thomas W. Hertel. (2000). Decomposing Welfare Changes in the GTAP Model. Center of Global Trade Analysis, Purdue University.

Mary E. Burfisher. (2011). Introduction to Computable General Equilibrium. New York: Cambridge University Press

Philip Harslett. (2013). The GTAP Data Base Construction Procedure. Center of Global Trade Analysis, Purdue University.

Thomas W. Hertel. (1997). Global Trade Analysis Modeling and Applications. New York: Cambridge University Press.