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A New Regional Household Demand System for GTAP

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  • McDougall, Robert

Abstract

The GTAP final demand system has some known defects: the computation of the equivalent variation is not exact; with non-standard demand parameters, the equivalent variation may be grossly in error; the decomposition of the equivalent variation contains a nuisance term. We find a further defect, that the upper-level demand equations are invalid. We revise the model to remove these defects.

Suggested Citation

  • McDougall, Robert, 2000. "A New Regional Household Demand System for GTAP," GTAP Working Papers 404, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  • Handle: RePEc:gta:workpp:404
    Note: GTAP Working Paper No. 14
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    File URL: https://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=404
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