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GEMPACK: History, How it Works and an Application to New Quantitative Trade Modelling

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  • Peter B. Dixon
  • Maureen T. Rimmer

Abstract

Computable General Equilibrium (CGE) modelling started with the publication in 1960 of Johansen's model of Norway. It continues to the present time as an active research and policy field. In a recent count, there were 33,000 people in the GTAP CGE modelling network alone. This paper identifies GEMPACK software, developed in Australia for solving large scale CGE models in the Johansen school, as one of the factors contributing to the enduring popularity of CGE. The paper tells the story of how GEMPACK came into existence, how it works, and how it relates to Johansen. The paper was prepared for a workshop on bridging the gap between CGE and New Quantitative Trade (NQT) models. In illustrating GEMPACK and showing connections between CGE and NQT, we present a GEMPACK solution and analysis of Eaton and Kortum's seminal NQT model, published in Econometrica in 2002.

Suggested Citation

  • Peter B. Dixon & Maureen T. Rimmer, 2025. "GEMPACK: History, How it Works and an Application to New Quantitative Trade Modelling," Centre of Policy Studies/IMPACT Centre Working Papers g-357, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:g-357
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    References listed on IDEAS

    as
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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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