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Demand-Driven Structural Change in Applied General Equilibrium Models

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  • Roson, Roberto
  • van der Mensbrugghe, Dominique

Abstract

CGE models are often used to assess policies and environmental impacts occurring at some distant future. Whereas these models are characterized by a detailed account of the economic structure, which is often essential when dealing with impacts affecting specific sectors, they are also calibrated on the basis of some past input-output or SAM tables, meaning that they mirror an economic structure quite different from the one we could possibly observe in the future. This paper is about the development of a a correct methodology to obtain long run estimates of structural change, considering both supply and demand drivers and delivering relevant results for applied economic models, not only CGEs. The different approaches found in the literature are critically evaluated first. Some preliminary results about structural change effects are subsequently presented and discussed.

Suggested Citation

  • Roson, Roberto & van der Mensbrugghe, Dominique, 2017. "Demand-Driven Structural Change in Applied General Equilibrium Models," Conference papers 332902, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332902
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    References listed on IDEAS

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    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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