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Building a computable general equilibium model (cge) on a regional sam: the case of Tuscany

Author

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  • Gesualdo, Maria
  • Rosignoli, Stefano

Abstract

This paper aims to provide an empirical framework for building a Computable General Equilibrium (CGE) model from a regional Social Accounting Matrices (SAM). It illustrates the case of TUSCANI, a single-region comparative-static CGE model of the Tuscan economy, built on the regional SAM, which is provided by IRPET (Institute for regional economic planning of Tuscany). The strict linkage between regional SAMs and CGE models is identified. First of all, a detailed overview of the structure of the regional SAM for Tuscany is provided. The circular flow of the economy, so well summarized by the SAM, is the framework at the core of the CGE model, and comes to represents the benchmark equilibrium of TUSCANI. Because of the inner relationship between the benchmark economy and the SAM data structure, the CGE theoretical model is adapted in order to reflect the SAM structure adopted by IRPET. In particular, together with the main theoretical features of a regional model, TUSCANI incorporates a detail on income generation and income re-distribution for the households institutional sector, by using data as shown in the SAM. In conclusion, this paper demonstrates the structure of a regional SAM suitable for constructing a computable general equilibrium model’s database, which provides a guideline for future applications.

Suggested Citation

  • Gesualdo, Maria & Rosignoli, Stefano, 2013. "Building a computable general equilibium model (cge) on a regional sam: the case of Tuscany," MPRA Paper 81412, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:81412
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    References listed on IDEAS

    as
    1. James Andrew Giesecke, 2011. "Development of a Large-scale Single US Region CGE Model using IMPLAN Data: A Los Angeles County Example with a Productivity Shock Application," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(3), pages 331-350, April.
    2. Erwin L. Corong & J. Mark Horridge, 2012. "PHILGEM: A SAM-based Computable General Equilibrium Model of the Philippines," Centre of Policy Studies/IMPACT Centre Working Papers g-227, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. Richard Stone & D. G. Champernowne & J. E. Meade, 1942. "The Precision of National Income Estimates," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 9(2), pages 111-125.
    4. Jeffrey Round, 2003. "Constructing SAMs for Development Policy Analysis: Lessons Learned and Challenges Ahead," Economic Systems Research, Taylor & Francis Journals, vol. 15(2), pages 161-183.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    regional modelling; SAM; household and government spending;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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