GE (version 0.1.1)

gemInputOutputTable_7_4: A General Equilibrium Model based on a 7x4 Input-Output Table

Description

This is a general equilibrium model based on a 7x4 input-output table.

Usage

gemInputOutputTable_7_4(
  IT,
  product.output,
  supply.labor,
  supply.capital,
  es.agri = 0,
  es.manu = 0,
  es.serv = 0,
  es.hh = 0,
  es.VA.agri = 0.25,
  es.VA.manu = 0.5,
  es.VA.serv = 0.8,
  ...
)

Arguments

IT

the input part of the input-output table in the base period (unit: trillion yuan).

product.output

the outputs of products in the base period.

supply.labor

the supply of labor.

supply.capital

the supply of capital.

es.agri, es.manu, es.serv

the elasticity of substitution between the intermediate input and the value-added input of the agriculture sector, manufacturing sector and service sector.

es.hh

the elasticity of substitution among products consumed by the household sector.

es.VA.agri, es.VA.manu, es.VA.serv

the elasticity of substitution between labor input and capital input of the agriculture sector, manufacturing sector and service sector.

...

arguments to be transferred to the function sdm of the package CGE.

Value

A general equilibrium, which is a list with the following elements:

• p - the price vector with labor as numeraire.

• D - the demand matrix, also called the input table. Wherein the benchmark prices are used.

• DV - the demand value matrix, also called the value input table. Wherein the current price is used.

• SV - the supply value matrix, also called the value output table. Wherein the current price is used.

• IT - the nonstandard input table, wherein the agricultural tax can be negative.

• ITV - the nonstandard value input table, wherein the agricultural tax can be negative.

• value.added - the value-added of the three production sectors.

• dstl - the demand structure tree list of sectors.

• ... - some elements returned by the CGE::sdm function

Details

Given a 7x4 input-output table, this model calculates the corresponding general equilibrium. This input-output table contains 3 production sectors and 1 household. The household consumes products and supplies labor, capital, stock and tax receipt. Generally speaking, the value of the elasticity of substitution in this model should be between 0 and 1.

Examples

# NOT RUN {
IT17 <- matrix(c(
  1.47, 6.47, 0.57, 2.51,
  2.18, 76.32, 12.83, 44.20,
  0.82, 19.47, 23.33, 35.61,
  6.53, 13.92, 21.88, 0,
  0.23, 4.05, 6.76, 0,
  -0.34, 6.43, 3.40, 0,
  0.13, 8.87, 10.46, 0
), 7, 4, TRUE)

product.output <- c(11.02, 135.53, 79.23)

rownames(IT17) <- c("agri", "manu", "serv", "lab", "cap", "tax", "dividend")
colnames(IT17) <- c("sector.agri", "sector.manu", "sector.serv", "sector.hh")

ge <- gemInputOutputTable_7_4(
  IT = IT17,
  product.output = product.output,
  supply.labor = 42.33,
  supply.capital = 11.04
)

#### labor supply reduction
geLSR <- gemInputOutputTable_7_4(
  IT = IT17,
  product.output = product.output,
  supply.labor = 42.33 * 0.9,
  supply.capital = 11.04
)

geLSR$z / ge$z
geLSR$p / ge$p

#### capital accumulation
geCA <- gemInputOutputTable_7_4(
  IT = IT17,
  product.output = product.output,
  supply.labor = 42.33,
  supply.capital = 11.04 * 1.1
)

geCA$z / ge$z
geCA$p / ge$p

#### technology progress
IT.TP <- IT17
IT.TP ["lab", "sector.manu"] <-
  IT.TP ["lab", "sector.manu"] * 0.9

geTP <- gemInputOutputTable_7_4(
  IT = IT.TP,
  product.output = product.output,
  supply.labor = 42.33,
  supply.capital = 11.04
)

geTP$z / ge$z
geTP$p / ge$p

##
IT.TP2 <- IT.TP
IT.TP2 ["cap", "sector.manu"] <-
  IT.TP2["cap", "sector.manu"] * 1.02
geTP2 <- gemInputOutputTable_7_4(
  IT = IT.TP2,
  product.output = product.output,
  supply.labor = 42.33,
  supply.capital = 11.04
)

geTP2$z / ge$z
geTP2$p / ge$p

##
IT.TP3 <- IT17
IT.TP3 ["lab", "sector.manu"] <-
  IT.TP3 ["lab", "sector.manu"] * 0.9
IT.TP3 ["lab", "sector.agri"] <-
  IT.TP3 ["lab", "sector.agri"] * 0.8

geTP3 <- gemInputOutputTable_7_4(
  IT = IT.TP3,
  product.output = product.output,
  supply.labor = 42.33,
  supply.capital = 11.04
)

geTP3$value.added / ge$value.added
prop.table(geTP3$value.added) - prop.table(ge$value.added)

#### demand structure change
IT.DSC <- IT17
IT.DSC["serv", "sector.hh"] <- IT.DSC ["serv", "sector.hh"] * 1.2

geDSC <- gemInputOutputTable_7_4(
  IT = IT.DSC,
  product.output = product.output,
  supply.labor = 42.33,
  supply.capital = 11.04
)

geDSC$z[1:3] / ge$z[1:3]
geDSC$p / ge$p

#### tax change
IT.TC <- IT17
IT.TC["tax", "sector.agri"] <- IT.TC["tax", "sector.agri"] * 2

geTC <- gemInputOutputTable_7_4(
  IT = IT.TC,
  product.output = product.output,
  supply.labor = 42.33,
  supply.capital = 11.04
)

geTC$z / ge$z
geTC$p / ge$p

##
IT.TC2 <- IT17
IT.TC2["tax", "sector.manu"] <- IT.TC2["tax", "sector.manu"] * 0.8

geTC2 <- gemInputOutputTable_7_4(
  IT = IT.TC2,
  product.output = product.output,
  supply.labor = 42.33,
  supply.capital = 11.04
)

geTC2$z / ge$z
geTC2$p / ge$p
# }
# NOT RUN {
# }