# ############################################################################ # (c) Chancellery of the Prime Minister 2012-2015 # # # # Authors: Marta Retkiewicz # # ############################################################################ # Simple CGE model with Leontief production function # ############################################################################ options { output LaTeX = TRUE; output LaTeX landscape = TRUE; output logfile = TRUE; }; indexsets { SEC = { 'A' .. 'C' }; HH = { '1' .. '2' }; }; block CONSUMER { definitions { u[] = (SUM(alpha * D[]^((omega - 1)/omega)))^(omega/(omega - 1)); }; controls { D[]; # Household h demand for good s }; objective { U[] = u[]; }; constraints { INC[] + PI[] = SUM(D[] * p[]); }; identities { INC[] = K[] * p_k[] + L[]; K[] = ks_data; L[] = ls_data; }; calibration { D[] = d_data -> alpha; SUM(alpha^omega) = 1 -> alpha<'A', h>; SUM(pi_h) = 1 -> pi_h<'1'>; }; }; block FIRM { controls { Y[], K[], L[], Y_VA[], Y_INT[]; }; objective { pi[] = Y[] * p[] - (K[] * p_k[] + L[]) - SUM(Y_INT[] * p[] / beta_x); }; constraints { # A two-level Leontief production function # Y = min{Y_VA, Y_INT} Y[] = Y_VA[]; Y[] = Y_INT[]; Y_VA[] = gamma_yva * K[]^beta_k * L[]^beta_l; }; identities { # Y_INT = min{(X * beta_x)} X[] = Y_INT[] / beta_x; }; calibration { beta_k + beta_l = 1 -> beta_k; L[] = l_data -> beta_l; Y_VA[] = y_data -> gamma_yva; X[] = x_data -> beta_x; }; }; block EQUILIBRIUM { identities { SUM(K[]) = SUM(K[]); p[] = 1; PI[] = SUM(pi[]) * pi_h; }; };