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The New Version of Latvian CGE Model

Author

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  • Konstantins Benkovskis

    (Latvijas Banka)

  • Olegs Matvejevs

    (Latvijas Banka)

Abstract

This paper describes the new version of Latvian CGE model, which is now an integral part of the joint CGE-EUROMOD modelling system. Special attention is devoted to the labour market and consumption blocks of CGE that are substantially improved compared with the previous version. We briefly describe the motivation to link Latvian CGE with Latvian EUROMOD and provide major technical details. We also provide an example of the policy simulation by the joint CGE-EUROMOD system, demonstrating how the introduction of the progressive personal income tax rate affected the Latvian economy at macro, industry and micro level.

Suggested Citation

  • Konstantins Benkovskis & Olegs Matvejevs, 2023. "The New Version of Latvian CGE Model," Working Papers 2023/02, Latvijas Banka.
  • Handle: RePEc:ltv:wpaper:202302
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    File URL: https://datnes.latvijasbanka.lv/papers/WP_2-2023.pdf
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    Cited by:

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    More about this item

    Keywords

    CGE model; Latvia; labour market; consumption; EUROMOD;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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