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Calibration Of Ces Functions For Real-World Multisectoral Modeling

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Author Info
Ferran Sancho

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Abstract

We show how to calibrate CES production and utility functions when indirect taxation affecting inputs and consumption is present. These calibrated functions can then be used in computable general equilibrium models. Taxation modifies the standard calibration procedures since any taxed good has two associated prices and a choice of reference value units has to be made. We also provide an example of computer code to solve the calibration of CES utilities under two alternate normalizations.

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File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/09535310902731270&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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Publisher Info
Article provided by Taylor and Francis Journals in its journal Economic Systems Research.

Volume (Year): 21 (2009)
Issue (Month): 1 ()
Pages: 45-58
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Handle: RePEc:taf:ecsysr:v:21:y:2009:i:1:p:45-58

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Related research
Keywords: Calibration; CGE modeling; CES utility and cost functions;

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This page was last updated on 2009-11-14.


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