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Calibration Of Ces Functions For Real-World Multisectoral Modeling

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  • Ferran Sancho

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.tandfonline.com/doi/abs/10.1080/09535310902731270
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Bibliographic Info

Article provided by Taylor & 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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Web page: http://www.tandfonline.com/CESR20

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Related research

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

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  1. Rutherford, Thomas F, 1999. "Applied General Equilibrium Modeling with MPSGE as a GAMS Subsystem: An Overview of the Modeling Framework and Syntax," Computational Economics, Society for Computational Economics, vol. 14(1-2), pages 1-46, October.
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Cited by:
  1. Warziniack, Travis W. & Finnoff, David & Shogren, Jason F., 2013. "Public economics of hitchhiking species and tourism-based risk to ecosystem services," Resource and Energy Economics, Elsevier, vol. 35(3), pages 277-294.
  2. Ana-Isabel Guerra & Ferran Sancho, 2010. "Rethinking Economy-Wide Rebound Measures: An Unbiased Proposal," Working Papers 456, Barcelona Graduate School of Economics.
  3. Christophe Heyndrickx & Natalia Tourdyeva & Victoria Alexeeva-Talebi, 2011. "The SUSTRUS model: a CGE model on regional level for sustainability policies in Russia," ERSA conference papers ersa11p1565, European Regional Science Association.
  4. Li, Aijun & Lin, Boqiang, 2013. "Comparing climate policies to reduce carbon emissions in China," Energy Policy, Elsevier, vol. 60(C), pages 667-674.
  5. Li, Aijun & Zhang, Aizhen & Cai, Hongbo & Li, Xingfeng & Peng, Shishen, 2013. "How large are the impacts of carbon-motivated border tax adjustments on China and how to mitigate them?," Energy Policy, Elsevier, vol. 63(C), pages 927-934.

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