IMPLEMENTING QUOTAS IN GTAP USING GEMPACK OR HOW TO LINEARIZE AN INEQUALITY
Ken Pearson and
Christian Friis Bach
No 28720, Technical Papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project
This document describes how explicit import and export quotas can be implemented and solved in the GTAP CGE trade model. The techniques described here apply equally well to other general and partial equilibrium models implemented and solved using the GEMPACK software. They also generalise to procedures for handling other inequalities in models solved via GEMPACK (even though GEMPACK does not allow explicit inequalities in the algebraic representation of models). In this document we review some recent applications of GTAP in which explicit import and export quotas have been modelled, and discuss how important it was for these applications to have explicit treatment of quotas. Accompanying this document are various computer files containing the ingredients of examples that readers can carry out for themselves while reading this paper. These files can also be used as a starting point for those who wish to explicitly model quotas in their own models.
Keywords: International; Relations/Trade (search for similar items in EconPapers)
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Working Paper: Implementing Quotas in GTAP Using GEMPACK or How to Linearize an Inequality (1996)
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