© 1999, Regional Research Institute, WVU. No portion of this Web site can be reproduced on paper or electronically without express permission from the Regional Research Institute. Computable General Equilibrium Modeling for Regional Analysis Co-Authors Eliécer E. Vargas Professor/Researcher Tropical Agricultural Research and Higher Education Center CATIE 7170 Turrialba, Costa Rica Office: (506) 558-2218 Fax: (506) 556-8514 e-mail: evargas@catie.ac.cr Gelson Tembo Agricultural Economist Policy and Planning Division Ministry of Agriculture, Food & Fisheries Lusaka, Zambia and MSU/USAID Food Security Research Project 86 Provident Street, Rhodes Park Lusaka, ZAMBIA e-mail: tembogel@msu.edu Dean F. Schreiner Department of Agricultural Economics Oklahoma State University Mall Stillwater, OK 74078 Tele: (405) 744-6168 Fax: (405) 744-8210 e-mail: dischrei@okstate.edu David W. Marcouiller Department of Urban and Regional Planning Old Music Hall, 925 Bacom Mall University of Wisconsin Madison, WI 53706 Tele: (608) 262-2998 e-mail: dave@macc.wisc.edu Table of Contents 1.0 Introduction 1.1 Introduction 1.2 General equilibrium economic models 2.0 Overview of CGE analysis 2.1 CGE analysis at national and regional levels 2.2 Data and data organization 2.2.1 Social accounting matrices What is a SAM? How are SAM's useful for policy analysis? How is a regional/state SAM constructed? 2.2.2 Using IMPLAN to construct a SAM The aggregate SAM for Oklahoma 2.3 Determining parameter values 3.0 A Competitive Regional CGE Model 3.1 Production system 3.1.1 Composite value-added and intermediate inputs 3.1.2. Substitution among primary factors of production Primary inputs and their demands Intermediate inputs and their demands 3.1.3 Substitution among types of factor inputs 3.1.4 Net output price 3.2 Commodity markets 3.2.1 Market outlets for regional output 3.2.2. Commodity consumption by households Household commodity demand systems Commodity substitution of imports for domestic product 3.2.3 Institutional markets 3.2.4 Commodity prices Composite purchase price Composite output price 3.2.5 Commodity market equilibrium 3.3 Factor markets and factor incomes 3.3.1 The labor market Labor income 3.3.2 The capital market Capital income 3.3.3 The land market 3.3.4 Enterprise income 3.3.5 Household income Regional households Labor out-migration households Labor in-migration households 3.4 Measures of regional and household welfare 3.4.1 Regional welfare Regional expenditure Regional price level Net government revenue Other regional measures of welfare 3.4.2 Household welfare Household income Compensating and equivalent variaton 4.0 Model Execution 4.1 Competitive CGE model equations 4.2 GAMS solution 4.3 Model construction in GAMS 4.4 Model simulation 5.0 Increasing Returns and Imperfect Competition in Regional CGE Modeling 5.1 Increasing returns, non-convexity, and competitive CGE models 5.2 Modeling increasing returns and imperfect competition 5.2.1 Increasing returns – the dual approach 5.2.2 Increasing returns – the primal approach 5.2.3 Market power Contestable pricing From monopoly to oligopoly 5.3 Calibration 6.0 Policy Applications and Summary and Conclusions 6.1 Policy application 6.1.1 Agricultural export prices 6.1.2 Sport fishing trip demand 6.2 Summary and conclusions References List of Tables and Figures 2.1 Aggregated Social Accounting Matrix (SAM) for Oklahoma, 1993 ($1,000) or pdf file of Table 2.1 and Tables 2-6 3.1 Elasticities of Import Substitution 3.2 Elasticities of Transformation 4.1 Competitive CGE Model Equations 4.2 Subscript Notation 4.3 Summary of Endogenous Variables 4.4 Summary of Exogenous Variables 4.5 Summary of Parameters 4.6 Effects of a 5% Change in Terms of Trade, Oklahoma, 1993 Figure 2.1. An Illustrative Social Accounting Matrix List of acronyms Glossary of Terms   Back to list of contributions Back to Web Book Home