Abstract
CGE models (Fig. 5.1) are referred to as computable because they can be applied to economic data. Data for the SAM is collected and then adjusted and balanced so that total receipts are equal to total outlays for each account. The SAM data represents the so-called benchmark general equilibrium, along with specific assumptions regarding utility and production functions to show one equilibrium solution of the economic model (Deng 2011). An integrated CGE model will usually include a set of water and land accounts that accompany the SAM, which represent water and land use by industry and final demand sectors at the equilibrium solution.
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Notes
- 1.
For a detailed treatment of the linearized approach to AGE modeling, see the Black Book. Chapter 3 contains information about Euler's method and multistep computations.
- 2.
For a comparison of the levels and linearized approaches to solving AGE models see Hertel et al. (1992).
- 3.
For equation E_x we could have written: \(\left( {{\text{all}},{\text{ j}},{\text{ FAC}}} \right){\text{ x}}\left( {\text{j}} \right) \, = {\text{ z }} - {\text{ SIGMA}}*\left[ {{\text{p}}\left( {\text{j}} \right) \, - {\text{ p}}\_{\text{f}}} \right]\), without affecting simulation results. Our convention that the index (f), be the same as the initial letter of the set it ranges over, aids comprehension but is not enforced by GEMPACK. By contrast, GAMS (a competing software package) enforces consistent usage of set indices by rigidly connecting indices with the corresponding sets.
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Deng, X., Wang, Y., Wu, F., Zhang, T., Li, Z. (2014). Implementation. In: Integrated River Basin Management. SpringerBriefs in Environmental Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-43466-6_5
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