Overview of closed model
This lecture introduces the basic structure of GTAP model, including:
- Overview of the GTAP Framework: basic introduction on components and agents in the model
- Sets in GTAP model: set of commodities in the model
- Distribution of Sales
- Accounting relationship of GTAP one region model: relationships that are always hold
- Behavior equations for agents in GTAP model:
- Supply (lecture 3): Producer
- Demand (lecture 4)
- Consumer (private household)
- Government
- Saving
- Price linkage: how taxes represented in the model and how do they link price faced by different agents
- Model closure: finally, conditions that make general equilibrium model complete. We can relax some closures to make GE model to be PE models.
Finally, review the model with the big picture: Visualization of GTAP model