An extented myGTAP model to address subsistence production and sub-national households as a module in CGEBox

Over the last years, the Joint Research Centre of the European Commission has developed a recursive-dynamic single-country CGE called DEMETRA (Dynamic Equilibrium Model for Economic development), building on the STAGE (McDonald 2007) and STAGE-DEV models (Aragie et al., 2017), specifically targeted for capacity building and subsequent support to policy design in African countries. Accordingly, DEMETRA features attributes such as multiple households, sub-national regions, segmented factor markets or specifics of home consumption and production important for developing country analysis. For a number of reasons, including an easier link to the GTAP data base, a project has recently started to implement core features of DEMETRA into CGEBox (Britz and van der Mensbrugghe 2018). We present in here how additional features from DEMETRA are implemented in CGEBox such as a distinction between subsistence and commercial production and multiple household types at sub-national level. We discuss the minimal data needs to uses these extensions and show an example application where we construct a long-run baseline for an African countries based on macro-projections related to the Socio-Economic Pathways.