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Theoretical Structure of Dynamic GTAP

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Author Info
Ianchovichina, Elena
Robert McDougall

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Abstract

This paper documents the foreign asset ownership and investment theory of the dynamic GTAP model (GTAP-Dyn). The new investment theory offers a disequilibrium approach to modeling endogenously international capital mobility. It permits a recursive solution procedure, a feature that allows easy implementation of dynamics into any static AGE model without imposing limitations on the model's size. The method involves treating time as a variable, not as an index. having time as a variable allows the construction of dynamic GTAP with minimum modifications to the existing structure of GTAP, by separating the theory of static GTAP from the length of run.

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File URL: http://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=480
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Paper provided by Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University in its series GTAP Technical Papers with number 480.

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Date of creation: 2000
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Handle: RePEc:gta:techpp:480

Note: GTAP Technical Paper No. 17
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