Two large applied general equilibrium models, GTAP and MONASH, are used in this paper to simulate the elimination of trade barriers among the members of APEC. These models focus respectively on global trading relations and on the detailed sectoral, occupational, and regional dimensions of the...

Consider the following two opinions, both of which can be found in the literature of consumer demand systems: (a) As the real income of a consumer becomes indefinitely large, re-mixing the consumption bundle becomes irrelevant: having chosen the ultimately satisfying budget shares at any given...

Consider the following two opinions, both of which can be found in the literature of consumer demand systems: (a) As the real income of a consumer becomes indefinitely large, re-mixing the consumption bundle becomes irrelevant: having chosen the ultimately satisfying budget shares at any given...

General equilibrium models are usually represented as a system of levels equations (e.g. in North America) or a system of linearized equations (e.g. in Australia). Either representation can be used to obtain accurate solutions. General-purpose software is available in both cases - GAMS or MPS/GE...

This document introduces GEMPACK to readers who are familiar with using GAMS for general equilibrium modeling. The document points out similarities and differences between GAMS and GEMPACK. The many similarities make it relatively easy for a GAMS modeler to begin using GEMPACK productively. A...

Economic models often involve large systems of linear equations which are sparsely populated with nonzero entries. The use of sparse solution packages to solve these models saves computer CPU time, and, more importantly, has the potential to conserve large portions of the research time of...

Considers the solution of large systems of linear equations, such as those arising from a large linearized economic model. Recommends (a) that matrix inversion be avoided, in favour of LU methods; and (b) that sparsity in the system be exploited using special computer subroutines. Some examples...

GEMPACK is a suite of general-purpose economic modelling software especially suitable for general and partial equilibrium models. It can handle a wide range of economic behaviour and also contains a versatile method for solving intertemporal models. GEMPACK provides software for calculating...

To make CGE models realistic, inequality constraints (e.g., import quotas) or non-differentiable functions (e.g., income tax schedules) are sometimes needed. Both situations may be described using complementarity conditions, which state that either an equation is true or its complementary...

This paper describes a practical and conceptually simple iterative method for solving large dynamic CGE models under rational expectations. Details are given for the MONASH model of Australia but the general approach could be applied to a wide range of dynamic models. The method has been...