Reducing unwanted consequences of aggregation in large-scale economic models - a systematic empirical evaluation with the GTAP model

Wolfgang Britz, Arne Drud and Dominique van der Mensbrugghe ()

No 232876, Discussion Papers from University of Bonn, Institute for Food and Resource Economics

Abstract: We discuss how to avoid aggregation bias in large-scale global Computable General Equilibrium (CGE) models by reducing the need of pre-model aggregation, based on the combination of algorithmic improvements and a filtering approach which removes small transactions. Using large-scale sensitivity analysis, we show the impact of pre-aggregation and filtering on model size, model solution time and simulated welfare impacts, using a multi-lateral partial trade liberalization simulated with the standard GTAP model as the test case. We conclude that pre-model aggregation should be avoided as far as possible, and that our filtering approach and algorithmic improvements allow global CGE analysis even with highly disaggregated data sets at moderate solution times.

Keywords: International Relations/Trade; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 27
Date: 2015-12-10
New Economics Papers: this item is included in nep-cmp and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/232876/files/dispap15_04.pdf (application/pdf)

Related works:
Journal Article: Reducing unwanted consequences of aggregation in large-scale economic models - A systematic empirical evaluation with the GTAP model (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ubfred:232876

DOI: 10.22004/ag.econ.232876

Access Statistics for this paper

More papers in Discussion Papers from University of Bonn, Institute for Food and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().