12th Ruhr Graduate Summer School in Economics "Climate and Trade Policy Analysis with GAMS and MPSGE"

This workshop provides a practical guideline to CGE modeling of open economies using data of the Global Trade Analysis Project (GTAP) which includes detailed national accounts on production and consumption together with bilateral trade flows for a large number of countries. The workshop will discuss alternative approaches to study international trade in a general equilibrium framework: (i) the wide-spread Armington assumption that goods of different origin command different prices, (ii) the alternative notion of Heckscher-Ohlin that goods of different origin are homogenous, and (iii) Melitz’s new trade theory of monopolistic competition among heterogeneous firms. Numerical models for these complementary approaches to policy analysis of open economies will be developed and applied to the fields of economic integration and climate policy.