Systematic Sensitivity Analysis with Respect to Correlated Variations in Parameters and Shocks
AbstractWe show how you can carry out systematic sensitivity analysis (SSA) with respect to parameters and/or shocks, which vary according to a specified covariance matrix. You can use the existing SSA tools in RunGTAP or RunGEM to do this if your model is implemented in GEMPACK. Those SSA tools assume that all parameters or shocks are varying independently (i.e., the distributions of all parameters or shocks are uncorrelated) or together (i.e., are completely correlated). The techniques in this paper remove those restrictions. However, users need to make small modifications to the TAB file for the model. Different modifications are needed for different SSA scenarios. Further, the standard SSA procedure built into RunGTAP and RunGEM allows you to compute the sensitivity of model results either with respect to variations in parameter values or with respect to variations in shock values, but you cannot vary both parameters and shocks at the same time. Our discussion concentrates on the parameter case. However, we later show how shock variation may be modelled as a type of parameter variation. This opens the door to simultaneous variation of shocks and parameters. We include worked examples of the techniques described, based on the standard GTAP Model.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University in its series GTAP Technical Papers with number 3496.
Date of creation: 2011
Date of revision:
Note: GTAP Technical Paper No. 30
Contact details of provider:
Postal: 1145 Krannert Building, West Lafayette, IN 47907-1145
Phone: (765) 494-4267
Fax: 765 494-9176
Web page: http://www.gtap.agecon.purdue.edu/
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-02 (All new papers)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Hertel, Thomas, 2013. "Global Applied General Equilibrium Analysis Using the Global Trade Analysis Project Framework," Handbook of Computable General Equilibrium Modeling, Elsevier.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jeremy Douglas).
If references are entirely missing, you can add them using this form.