Module 2700
Advanced multi-regional CGE modelling

Instructors

The course is offered at the Economic Modelling of Agricultural System Group, Institute for Food and Resource Eonomics, Rheinische Friedrichs-Wilhelm-Universitaet, Nussallee 21, 53115 Bonn. The instructors are:

PD Dr. Wolfgang Britz. Tel.: 0228 73 2912, Email: wolfgang.britz@ilr.uni-bonn.de
Dr. Yaghoob Jafari. Tel.: 0228 73 2502, Email: yaghoob.jafari@ilr.uni-bonn.de

Objectives

Students

• gain an overview on different specifications in multi-regional CGEs and their potential as well as limitations with respect to the research question to be analysed
• will reach a critical understanding how related choices impact model outcomes
• to foster more informed and appropriate configurations and parameterization of CGE models in applied work
• gain hands-on experience configuring multi-regional CGEs as needed for their own research projects
• learn to systemically analyse simulated quantitative impacts of changes in policies or other drivers with regard e.g. to production, demand, trade, prices, welfare and environmental indicators, drawing on micro-economic theory and considering the specific model configuration
• are trained on how to select relevant CGE results and how to communicate them
• are trained to successfully work in small groups under time pressure.

Course description

This course is designed for advancing the knowledge and experience in CGE modelling and prepare students for using and adapting state-of-the-art multi-regional CGE models for own research. It focuses on the widely used multi-regional CGE model GTAP and variants thereof, as implemented in CGEBox. Students are not expected to work in software codes, but use Graphical User Interfaces.

The following topics will be covered

• impacts of different data base aggregations on simulated outcomes
• impacts of different nestings in the production function on simulated outcomes
• impacts of a wider range of options to model international trade on simulated outcomes
• impacts of a different functional forms in final demand on simulated outcomes

The course is a combination of presentations by instructors and students, PC demonstrations, group work and assignments. During the course, participants will work in subgroups in parallel and prepare each day a presentation on a selected topic. Instructors will provide feedback and will be available during the group work phases to help with technical problems and/or to answer related questions.

More detail on the course can be found here.

Course schedule and outline

Date	Content
Before the course	Check and refresh your basic understanding of CGE modelling Prepare an assigned presentation, based on the related mandatory readings Scan optional readings on various model documentations, CGE critique etc.
Monday See day 1	Overview on GTAP Model and GTAP Data base Software demo on data base aggregation Group work to analyse the impact of differently aggregated data bases Presentation of group works
Tuesday See day 2	Overview on production function specification in different CGE model Group work to analyse the impact of differently nested/parameterized production functions Presentation of group works
Wednesday See day 3	Overview on the implementation of the Armington approach in different CGE model Overview on implementing tariff line detail into CGE models Group work to analyse the impact of different implementations of the Armington approach Presentation of group works
Thursday See day 4	Improve on "Small shares stay small": CES function with commitment terms Improve on "Small shares stay small": Spatial arbitrage Overview on Melitz model Group work to analyse the impact on the discussed alternatives to the standard Armington approach Presentation of group works
Friday See day 5	Overview on widely used functional forms in final demand in CGEs (MAIDADS, CES, LES, CD, CDE) Group work to analyse the impact of different implementation of final demand Using CES-subnests in final demand Presentation of group works Final evaluation round and goodbye

Teaching methods

Presentations (35%), PC-demonstrations (15%), Hands-on-exercises (50%)

Workload: 30 contact hours during the course; 30 hours of pre- and during course self-study

Requirements

• Students should bring their own notebooks with GAMS and CGEBox installed. Refer to details on the course web-site.
• Good understanding of intermediate microeconomics,
• Basic knowledge of general equilibrium modelling. Refer to material for self-learning phase for preparation

References

Students receive mandatory readings according to their allocated assignments.

Further useful references for the preparation of the course can be found here.

Certificate

A certificate of successful participation will be issued if

• the student has properly prepared the assigned presentation and handed it in on time
• participated actively at all group works
• contributed to presentations