$TITLE DYNAMIC REVENUE ANALYSIS MODEL - edram999 $ONTEXT INDEX TO MODEL SECTIONS 1. OVERALL SETTINGS FOR GAMS AND OUTPUT FILE 1.1 CONTROLS PLACED ON OUTPUT GENERATION 1.2 SET UP FILE FOR SOLUTION VALUES 2. SET DEFINITION 2.1 EXPLICIT SET DECLARATION 2.2 ALIASES 3. PARAMETERS AND EXOGENOUS VARIABLES 3.1 SOCIAL ACCOUNTING MATRIX, CAPITAL COEFFICIENT MATRIX AND PARAMETERS 3.2 PARAMETER DECLARATION 3.3 CALCULATIONS OF PARAMETERS AND INITIAL VALUES 4. VARIABLES 4.1 VARIABLE DECLARATION 4.2 INITIALIZATION OF VARIABLES 4.3 REMOVING TRACE NUMBERS FOR COMPUTATIONAL PURPOSES 4.4 SETTING COMPUTATIONALLY USEFUL BOUNDS ON VARIABLES (TO HELP THE SOLVER) 5. PRE-MODEL CHECK OF PARAMETERS AND INITIAL VALUES OF VARIABLES 5.1 PRINTING CALCULATED PARAMETERS AND EXOGENOUS VARIABLES 5.2 SAVING INITIAL VALUES FOR VARIABLES 6. EQUATIONS 6.1 EQUATION DECLARATION 6.2 EQUATION ASSIGNMENT 6.2.1 HOUSEHOLDS 6.2.2 PRODUCERS 6.2.3 TRADE 6.2.4 INVESTMENT 6.2.5 LABOR SUPPLY AND MIGRATION 6.2.6 HOUSEHOLD INCOME TAXATION 6.2.7 GOVERNMENT 6.2.8 MODEL CLOSURE 6.2.9 MODEL CLOSURE USING FIXED VALUES (COMPUTATIONALLY MORE EFFICIENT THAN EQUATIONS) 6.2.10 POLLUTION 7. SOLVE AND OUTPUT PREPARATION 7.1 MODEL FORMULATION 7.2 TAX EXPERIMENT LOOP 7.3 PUT RESULTS INTO OUTPUT FILE $OFFTEXT *---------------------------------------------------------------- * 1. OVERALL SETTINGS FOR GAMS AND OUTPUT FILE *---------------------------------------------------------------- * 1.1 CONTROLS PLACED ON OUTPUT GENERATION *---------------------------------------------------------------- $OFFSYMLIST OFFSYMXREF * OPTIONS SYSOUT=OFF, SOLPRINT=OFF, LIMROW=0, LIMCOL=0; *---------------------------------------------------------------- * 1.2 SET UP FILE FOR SOLUTION VALUES *---------------------------------------------------------------- FILE RES /EDRAM01C.RES/; RES.PW = 300; RES.ND = 6; RES.LW = 13; RES.NW = 13; RES.LJ = 1; PUT RES; *---------------------------------------------------------------- * 2. SET DEFINITION *---------------------------------------------------------------- * 2.1 EXPLICIT SET DECLARATION *---------------------------------------------------------------- SETS Z ALL ACCOUNTS IN SOCIAL ACCOUNTING MATRIX / AGRIC INDUSTRY AGRICULTURE ENMIN INDUSTRY ENERGY MINING OTHPR INDUSTRY OTHER PRIMARY CONST INDUSTRY CONSTRUCTION FOODS INDUSTRY FOOD MANUFACTURING APPAR INDUSTRY APPAREL MFRCO INDUSTRY CONSTRUCTION ORIENTED MANUFACTURING PAPER INDUSTRY PAPER PRINTING PUBLISHING CHEMS INDUSTRY CHEMICALS RUBBER PLASTICS CONCH INDUSTRY CONSUMER CHEMICALS PETRO INDUSTRY PETROLEUM ELECT INDUSTRY ELECTRONIC TECHNOLOGY AEROS INDUSTRY AEROSPACE MOTOR INDUSTRY MOTOR VEHICLES ENGIN INDUSTRY COMBUSTION ENGINES OTHMA INDUSTRY OTHER MANUFACTURING TRANS INDUSTRY TRANSPORTATION COMMU INDUSTRY COMMUNICATION UTILI INDUSTRY UTILITIES WHOLE INDUSTRY WHOLESALE RETAI INDUSTRY RETAIL BANKS INDUSTRY BANKS AND OTHER CREDIT INSTITUTIONS INSUR INDUSTRY INSURANCE REALE INDUSTRY REAL ESTATE OFIRE INDUSTRY OTHER FINANCE INSURANCE AND REAL ESTATE BSERV INDUSTRY BUSINESS SERVICES HEALT INDUSTRY HEALTH ENTER INDUSTRY ENTERTAINMENT OSERV INDUSTRY OTHER SERVICES LABOR INDUSTRY FACTOR LABOR CAPIT INDUSTRY FACTOR ALL OTHER FACTORS COMBINED AS CAPITAL CFOOD COMMODITY FOOD AND BEVERAGE CHOME COMMODITY SHELTER CFUEL COMMODITY FUEL AND UTILITIES CFURN COMMODITY HOUSEHOLD FURNISHING AND OPERATION CCLTH COMMODITY APPAREL AND ITS UPKEEP CTRNS COMMODITY TRANSPORTATION CMEDS COMMODITY MEDICAL CARE CAMUS COMMODITY ENTERTAINMENT COTHR COMMODITY OTHER GOODS AND SERVICES HOUS0 HOUSEHOLD 0.0 PERCENT MARGINAL CA PIT HOUS1 HOUSEHOLD 1.0 PERCENT MARGINAL CA PIT HOUS2 HOUSEHOLD 2.0 PERCENT MARGINAL CA PIT HOUS4 HOUSEHOLD 4.0 PERCENT MARGINAL CA PIT HOUS6 HOUSEHOLD 6.0 PERCENT MARGINAL CA PIT HOUS8 HOUSEHOLD 8.0 PERCENT MARGINAL CA PIT HOUS9 HOUSEHOLD 9.3 PERCENT MARGINAL CA PIT UNDER 200K HOUSH HOUSEHOLD 9.3 PERCENT MARGINAL CA PIT OVER 200K INVES INVESTMENT FTSOC GOVERNMENT FEDERAL TAX SOCIAL SECURITY FTPIT GOVERNMENT FEDERAL TAX PERSONAL INCOME TAX FTPRO GOVERNMENT FEDERAL TAX PROFITS FTDUT GOVERNMENT FEDERAL TAX DUTY FTMSC GOVERNMENT FEDERAL TAX MISCELLANEOUS CTHHS GOVERNMENT CALIFORNIA TAX VARIOUS HOUSEHOLD TAXES CTBOZ GOVERNMENT CALIFORNIA TAX ALCOHOL TAXES CTCIG GOVERNMENT CALIFORNIA TAX CIGARETTE TAXES CTHOR GOVERNMENT CALIFORNIA TAX HORSE RACING CTEST GOVERNMENT CALIFORNIA TAX ESTATE TAXES CTTRL GOVERNMENT CALIFORNIA TAX TRAILER FEES CTLIC GOVERNMENT CALIFORNIA TAX MOTOR VEHICLE LICENSE FEES CTDIE GOVERNMENT CALIFORNIA TAX DIESEL FUEL TAXES CTREG GOVERNMENT CALIFORNIA TAX MOTOR VEHICLE REGISTRATION FEES CTMSC GOVERNMENT CALIFORNIA TAX MISCELLANEOUS CTINS GOVERNMENT CALIFORNIA TAX INSURANCE GROSS PREMIUM TAX CTGAS GOVERNMENT CALIFORNIA TAX GASOLINE FUEL TAXES CTSAU GOVERNMENT CALIFORNIA TAX SALES AND USE TAXES CTBAC GOVERNMENT CALIFORNIA TAX BANK AND CORPORATION TAX CTLAB GOVERNMENT CALIFORNIA TAX LABOR TAXES UI AND WORKERS COMP CTPIT GOVERNMENT CALIFORNIA TAX PERSONAL INCOME TAX CTRGU GOVERNMENT CALIFORNIA TAX REGULATORY LICENSES AND FEES CTSVC GOVERNMENT CALIFORNIA TAX SERVICES TO THE PUBLIC CTPAM GOVERNMENT CALIFORNIA TAX USE OF PROPERTY AND MONEY CGENF GOVERNMENT CALIFORNIA GENERAL FUND LTPRP GOVERNMENT LOCAL TAX PROPERTY LTSAU GOVERNMENT LOCAL TAX SALES AND USE LTFMS GOVERNMENT LOCAL TAX MISCELLANEOUS ON FIRMS LTHHS GOVERNMENT LOCAL TAX MISCELLANEOUS ON HOUSEHOLDS LTMSC GOVERNMENT LOCAL TAX MISCELLANEOUS ON FIRMS AND HOUSEHOLDS FSDEF GOVERNMENT FEDERAL SPENDING DEFENSE FSNON GOVERNMENT FEDERAL SPENDING NON DEFENSE CSTRA GOVERNMENT CALIFORNIA SPENDING TRANSPORTATION CSCOR GOVERNMENT CALIFORNIA SPENDING CORRECTIONS CSK14 GOVERNMENT CALIFORNIA SPENDING K TO 14 EDUCATION CSUNI GOVERNMENT CALIFORNIA SPENDING UNIVERSITIES CSWEL GOVERNMENT CALIFORNIA SPENDING WELFARE CSHTH GOVERNMENT CALIFORNIA SPENDING HEALTH CSOTH GOVERNMENT CALIFORNIA SPENDING OTHER LSTRA GOVERNMENT LOCAL SPENDING TRANSPORTATION LSCOR GOVERNMENT LOCAL SPENDING CORRECTIONS LSK14 GOVERNMENT LOCAL SPENDING K TO 14 EDUCATION LSWEL GOVERNMENT LOCAL SPENDING WELFARE LSHTH GOVERNMENT LOCAL SPENDING HEALTH LSOTH GOVERNMENT LOCAL SPENDING OTHER ROW REST OF WORLD / C(Z) COMPOSITE COMMODITIES / CFOOD, CHOME, CFUEL, CFURN, CCLTH, CTRNS, CMEDS, CAMUS, COTHR / F(Z) FACTORS / LABOR, CAPIT / G(Z) GOVERNMENTS / FTSOC, FTPIT, FTPRO, FTDUT, FTMSC, CTHHS, CTBOZ, CTCIG, CTHOR, CTEST, CTTRL, CTLIC, CTDIE, CTREG, CTMSC, CTINS, CTGAS, CTSAU, CTBAC, CTLAB, CTPIT, CTRGU, CTSVC, CTPAM, CGENF, LTPRP, LTSAU, LTFMS, LTHHS, LTMSC, FSDEF, FSNON, CSTRA, CSCOR, CSK14, CSUNI, CSWEL, CSHTH, CSOTH, LSTRA, LSCOR, LSK14, LSWEL, LSHTH, LSOTH / GC(G) CALIFORNIA SPENDING / CSTRA, CSCOR, CSK14, CSUNI, CSWEL, CSHTH, CSOTH / GED(G) EDUCATION UNITS / CSK14, CSUNI, LSK14 / GL(G) LOCAL GOVERNMENT UNITS / LSTRA, LSCOR, LSK14, LSWEL, LSHTH, LSOTH / GN(G) ENDOGENOUS GOVERNMENTS / CSTRA, CSCOR, CSK14, CSUNI, CSWEL, CSHTH, CSOTH, LSTRA, LSCOR, LSK14, LSWEL, LSHTH, LSOTH / GX(G) EXOGENOUS GOVERNMENTS / FSDEF, FSNON / GS(G) SALES OR EXCISE TAXES / FTMSC, CTBOZ, CTCIG, CTHOR, CTTRL, CTLIC, CTDIE, CTREG, CTMSC, CTINS, CTGAS, CTSAU, CTRGU, CTPAM, LTPRP, LTSAU, LTFMS, LTMSC / GF(G) FACTOR TAXES / FTSOC, FTPRO, CTBAC, CTLAB / GI(G) INCOME TAX UNITS / FTPIT, CTPIT, LTPRP / GH(G) HOUSEHOLD TAX UNITS / FTMSC, CTHHS, CTEST, CTRGU, CTSVC, LTHHS, LTMSC / GNS(G) INFRASTRUCTURE GOV'TS / CSTRA, CSCOR, CSWEL, CSHTH, CSOTH, LSTRA, LSCOR, LSWEL, LSHTH, LSOTH / GW(G) TRANSFER PAYMENTS / FTSOC, FSNON, CTLAB, LSWEL, LSHTH / GSF(G) CA SPECIAL FUNDS UNITS / CTHHS, CTBOZ, CTCIG, CTHOR, CTLIC, CTDIE, CTREG, CTMSC, CTINS, CTGAS, CTSAU, CTRGU, CTSVC, CTPAM / GT(G) TAX UNITS / FTSOC, FTPIT, FTPRO, FTDUT, FTMSC, CTHHS, CTBOZ, CTCIG, CTHOR, CTEST, CTTRL, CTLIC, CTDIE, CTREG, CTMSC, CTINS, CTGAS, CTSAU, CTBAC, CTLAB, CTPIT, CTRGU, CTSVC, CTPAM, LTPRP, LTSAU, LTFMS, LTHHS, LTMSC / H(Z) HOUSEHOLDS / HOUS0, HOUS1, HOUS2, HOUS4, HOUS6, HOUS8, HOUS9, HOUSH / I(Z) INDUSTRY SECTORS / AGRIC, ENMIN, OTHPR, CONST, FOODS, APPAR, MFRCO, PAPER, CHEMS, CONCH, PETRO, ELECT, AEROS, MOTOR, ENGIN, OTHMA, TRANS, COMMU, UTILI, WHOLE, RETAI, BANKS, INSUR, REALE, OFIRE, BSERV, HEALT, ENTER, OSERV / PSO POLLUTION SOURCES OTHER THAN INDUSTRY / HH, NATR, MISC / PE POLLUTANTS EMITTED / ROG, PM10, TOG, CO, NOX, SOX, PM / T EXP. LOOP / BASE, TODAY / R1H REPORT 1 FOR STATE / OUT 'CA OUTPUT ($BILLION) ', D1OUT 'CHANGE CA OUTPUT ', D2OUT '% CHANGE CA OUTPUT ', SPI 'CA PERSONAL INCOME ($BILLION) ', D1SPI 'CHANGE CA PERS. INC. ', D2SPI '% CHANGE CA PERS. INC. ', CPI 'CONSUMER PRICE INDEX (BASE=1) ', D1CPI 'CHANGE AGGREGATE CPI ', D2CPI '% CHANGE AGGREGATE CPI ', POP 'POPULATION (MILLION FAMILIES) ', D1POP 'CHANGE POPULATION ', D2POP '% CHANGE POPULATION ', W 'WAGE INDEX (BASE = 100) ', D1W 'CHANGE WAGE INDEX ', D2W '% CHANGE WAGE INDEX ', LD 'LABOR DEMAND (MILLIONS) ', D1LD 'CHANGE LABOR DEMAND ', D2LD '% CHNGE LABOR DEMAND ', DEPR 'ECONOMYWIDE DEPRECIATION RATE ', R 'RETURN TO K INDEX (BASE=100) ', D1R 'CHNAGE RETURN TO CAPITAL INDEX ', D2R '% CHANGE RETURN TO CAPITAL INDEX', KD 'CAPITAL STOCK ($100 BILLION) ', D1KD 'CHANGE CAPITAL STOCK ', D2KD '% CHANGE CAPITAL STOCK ', GN 'GROSS PRIV. INVESTMENT($BILLION)', D1GN 'CHNGE. GROSS PRIV INVESTMENT ', D2GN '% CHANGE GROSS PRIV. INVESTMENT ', BAC 'BANK AND CORP TAX REVENUE ', PIT 'PERSONAL INCOME TAX REVENUE ', SAU 'SALES AND USE TAX REVENUE ', GFREV 'GENERAL FUND REVENUE ($BILLION) ', SFREV 'SPECIAL FUND REVENUE ($BILLION) ', DGF 'CHANGE IN GENERAL FUND ', DSF 'CHANGE IN SPECIAL FUND ', GFSAV 'GENERAL FUND BALANCE ($BILLION) ', D1GFSAV'CHANGE GENERAL FUND BALANCE ', D2GFSAV'% CHANGE GENERAL FUND BALANCE ', STATIC 'STATIC REVENUE ESTIMATE ($BILN) ', DDRE '($B)DOLLARS DYNAMIC REV. EFFECT ', PDRE '% DYNAMIC REVENUE EFFECT ', PROP98 'PROP 98 TRANSFER TO K14 EDUC($B)', MIC 'MANUFACT. INVEST. CREDIT ($B) '/ R2H REPORT 2 FOR STATUS / M-STAT, S-STAT / R3H REPORT 3 FOR SECTORS / IGT 'TRANSFERS FROM GF ', GOVS 'GOVT SAVINGS ', Y 'INCOMES '/ R4H REPORT 4 FOR INDUSTRIES / INTERMED '% RISE IN INTERMEDS DUE TO REGS ', DS 'OUTPUT ($BILLION) ', D1DS 'CHANGE OUTPUT ', D2DS '% CHANGE OUTPUT ', FDK 'CAPITAL ($100 BILLION) ', D1FDK 'CHANGE CAPITAL ', D2FDK '% CHANGE CAPITAL ', FDL 'JOBS (MILLIONS) ', D1FDL 'CHANGE JOBS ', D2FDL '% CHANGE JOBS ', P 'PRICE (BASE=1) ', D1P 'CHANGE PRICE ', D2P '% CHANGE PRICE ', PVA 'PRICE VALUE ADDED ', D1PVA 'CHANGE PVA ', D2PVA '%CHANGE PVA ', PD 'DOMESTIC PRICE ', M 'IMPORTS ($BILLION) ', D1M 'CHANGE IMPORTS ', D2M '% CHANGE IMPORTS ', X 'EXPORTS ($BILLION) ', D1X 'CHANGE EXPORTS ', D2X '% CHANGE EXPORTS ', RRL 'LABOR RENTAL RATE (BASE=100) ', D1RRL 'CHANGE LABOR RENTAL RATE ', D2RRL '%CHANGE LABOR RENTAL RATE ', RRK 'CAPITAL RENTAL RATE (BASE=100) ', D1RRK 'CNANGE CAPITAL RENTAL RATE ', D2RRK '% CHANGE CAPITAL RENTAL RATE '/ R5H REPORT 5 FOR I EMISSIONS / PII0 'TONS/DAY/OUTPUT($BN) ', DIRTI 'TONS/DAY ', D1DIRTI 'CHANGE TONS/DAY ', D2DIRTI '% CHANGE TONS/DAY '/ R6H REPORT 6 FOR HOUSEHOLDS / YD 'DISPOSABLE INCOME ($THOUSAND) ', D1YD 'CHANGE DISPOSABLE INCOME ', D2YD '% CHANGE DISPOSABLE INCOME ', YDR 'REAL DISPOSABLE INCOME ($THSND)', D1YDR 'CHANGE REAL DISPOSABLE INCOME ', D2YDR '% CHANGE REAL DISPOSABLE INCOME', Y 'GROSS INCOME ($THOUSAND) ', D1Y 'CHANGE GROSS INCOME ', D2Y '% CHANGE GROSS INCOME ', YR 'REAL GROSS INCOME ($THOUSAND) ', D1YR 'CHANGE REAL GROSS INCOME ', D2YR '% CHANGE REAL GROSS INCOME ', CPIH 'CONSUMER PRICE INDEX (BASE=1) ', D1CPIH 'CHANGE CONSUMER PRICE INDEX ', D2CPIH '% CHANGE CONSUMER PRICE INDEX '/ R7H REPORT 7 FOR TOTAL EMISSIONS / POLN 'POLLUTION LEVEL (TONS/DAY) ', D1POLN 'CHANGE POLLUTION LEVEL ', D2POLN '% CHANGE POLLUTION LEVEL '/ MS LABELS FOR MODEL STATUS / 01 ' OPTIMAL GLOB', 02 ' LOC OPT ', 03 ' UNBOUNDED', 04 ' INFES GLOBAL', 05 ' INFES LOCAL', 06 ' INTER INFEAS', 07 ' INTER NON-OP', 08 ' INTEG SOLVE', 09 ' INTER NONINT', 10 ' INTEG INFES', 11 ' UNUSED', 12 ' ERROR UNKNWN', 13 ' ERROR NOSOLN'/ SS LABELS FOR SOLVER STATUS / 01 ' OPTIMAL', 02 ' ITERATIONS', 03 ' RESOURCES', 04 ' TERM SOLVER', 05 ' VALERR LIMIT', 06 ' UNKNOWN', 07 ' NOT USED', 08 ' ERROR PREPRO', 09 ' ERROR SETUP', 10 ' ERROR SOLVER', 11 ' ERROR INTERN', 12 ' ERROR POSTPR', 13 ' ERROR SYSTEM'/; *---------------------------------------------------------------- * 2.2 ALIASES *---------------------------------------------------------------- ALIAS (I,J), (I,I1), (Z,Z1), (F,F1), (G,G1), (GI,GI1), (GS,GS1), (H,H1), (C,C1), (T,T1), (GC,GC1); *---------------------------------------------------------------- * 3. PARAMETERS AND EXOGENOUS VARIABLES *---------------------------------------------------------------- * 3.1 SOCIAL ACCOUNTING MATRIX, CAPITAL COEFFICIENT MATRIX AND PARAMETERS *---------------------------------------------------------------- $INCLUDE e-sam3c.prn $INCLUDE E-ccm4c.prn $INCLUDE E-MSCc.prn $INCLUDE pollutec.prn *---------------------------------------------------------------- * 3.2 PARAMETER DECLARATION *---------------------------------------------------------------- SCALARS ADA DOF CHANGE IN AVERAGE DAILY ATTENDANCE / 1.00 / DEPR DOF DEPRECIATION RATE; PARAMETERS * PARAMETERS CALCULATED FROM SOCIAL ACCOUNTING MATRIX DATA A(Z,Z1) IMPLAN INPUT OUTPUT COEFFICIENTS AD(Z,Z1) IMPLAN DOMESTIC INPUT OUTPUT COEFFICIENTS AG(Z,G) IMPLAN GOVERNMENT SPENDING SHARES OF NET INCOME ALPHA(F,I) IMPLAN FACTOR SHARE EXPONENTS IN PRODUCTION FUNCTION ALPHA0(C,H) DOF CONSTANT IN LA-AIDS CONSUMPTION FUNCTION ALPHACG(I,G) DOF GOVERNMENT CONSUMPTION SHARES OF GOODS ALPHAFG(F,G) DOF GOVERNMENT SHARES OF FACTOR RENTALS FITC(F,G) DOF ALLOCATION OF ITC TO FACTORS IGTD(G,G1) DOF TYPES OF INTER GOVERNMENTAL TRANSFERS SIGMAH(H) DOF AVERAGE PROPENSITY TO SAVE TAUF(G,F,Z) DOF FACTOR TAXES TAUFX(G,F,Z) DOF EXPERIMENTAL FACTOR TAXES TAUFH(G,F) DOF EMPLOYEE PORTION OF FACTOR TAXES TAUH(G,H) DOF HOUSEHOLD TAXES OTHER THAN PIT TAUM(G,I) DOF IMPORT DUTY RATES TAUQ(G,I) DOF INITIAL SALES TAX RATES TAUQX(G,I) DOF EXPERIMENTAL SALES TAX RATES TAXS(G,G1) DOF TAX DESTINATION SHARES KAPPA(GNS) DOF POLICY WEIGHTS OF GOV'T SPENDING FOR INSFRASTRUCTURE SCALE VARIABLE TEST(T) DOF EXPERIMENT PARAMETER * ELASTICITIES AND TAX PARAMETERS ETAE(I) UCB EXPORT ELASTICITIES WITH RESPECT TO DOMESTIC PRICE ETAGS(I) UCB PRODUCTION ELASTICITIES WITH RESPECT TO INFRASTRUCTURE SPENDING ETAED(H) DOF SENSIVITIY OF MIGRATION TO PUBLIC EDUCATION SPENDING ETAI(I) UCB INVESTMENT SUPPLY ELASTICITY ETAM(I) UCB IMPORT ELASTICITIES WITH RESPECT TO DOMESTIC PRICE ETARA(H) UCB L SUPPLY ELASTICITY WITH RESPECT TO AVERAGE WAGE ETAPIT(H) UCB L SUPPLY ELASTICITY WITH RESPECT TO TAXES ETAYD(H) UCB RESPONSIVENESS OF INMIGRATION TO AFTER TAX EARNINGS ETAU(H) UCB RESPONSIVENESS OF INMIGRATION TO UNEMPLOYMENT ETATP(H) UCB HOUSEHOLD RESPONSE TO TRANSFER PAYMENTS ITCX(Z,Z1) DOF INVESTMENT TAX CREDIT SHARE ALLOWED JOBCOR CALC CORRECTION FACTOR BETWEEN HOUSEHOLDS AND JOBS MTR(G,H) DOF MARGINAL TAX RATES NRPG(H) UCB NATURAL RATE OF POPULATION GROWTH PHI(I,C) DOF SHARES OF CONSUMPTION COMMODITIES SIGMA(I) UCB ELASTICITY OF FACTOR SUBSTITUTION TAXBASE(G,H) DOF BASE TAX AMOUNTS TAXBM(G,H) DOF TAX BRACKET MINIMUM TAXCVC(G,H) DOF TAX CONSTANT TO CORRECT TO OBSERVED TAXES TAXOD(G,H) DOF TAX OTHER DEDUCTIONS PER RETURN TAXPI(G,H) DOF TAX PERCENT ITEMIZING TAXSD(G,H) DOF TAX STANDARD DEDUCTIONS PER RETURN * INITIAL POLLUTION LEVELS ROG(PSO) ARB REACTIVE ORGANIC GASES PM10(PSO) ARB PM WITH AERODYNAMIC DIAMETER OF 10 MICRMETERS OR LESS TOG(PSO) ARB TOTAL ORGANIC GASES CO(PSO) ARB CARBON MONOXIDE NOX(PSO) ARB NITROGEN OXIDES SOX(PSO) ARB SULFUR OXIDES PM(PSO) ARB PARTICULATE MATTER * POLLUTION MEASURES PT(I,PE) ARB POLLUTION TOTALS BY INDUSTRY AND POLLUTANT PTO(PSO,PE) ARB POLLUTINO TOTALS BY OTHER SOURCE AND POLLUTANT PII0(I,PE) CALC POLLUTION INTENSITIES BY INDUSTRY AND POLLUTANT PIHH0(PE) CALC POLLUTION INTENSITY OF HOUSEHOULDS BY POLLUTANT * REGULATORY PARAMETERS REG1(I,J) UCB SCALING OF INTERMEDIATE DEMAND REG2(I) UCB SCALING OF WORLD PRICE REG3(I) UCB SCALING FOR IMPORTS * PRICE INCREASES SHOULD BE IMPLEMENTED VIA TAUQX('FTMSC',I) RATHER THAN REG5(I) OR REG6(I) REG5(I) UCB REGULATORY PRICE INCREASE (AFTER TAX) REG6(I) UCB REGULATORY PRICE INCREASE (BEFORE TAX) REG12(I) UCB REGULATORY CAPITAL STOCK ADJUSTMENT REG13(I) UCB REGULATORY EFFECTIVE CAPITAL STOCK ADJUSTMENT REG14(I) UCB BASE PRICE ADJUSTMENT IN IMPORT EQUATION * ARRAYS BUILT TO REPORT RESULTS TO SEPARATE FILE R1(R1H,T) REPORT SCALAR VARIABLES R2(R2H,T) REPORT SOLVER AND MODEL STATUS VALUES R3(R3H,Z,T) REPORT SECTORAL VARIABLES R4(R4H,I,T) REPORT ECONOMIC VARIABLES FOR INDUSTRIAL SOURCES R5(R5H,I,PE,T) REPORT POLLUTION VARIABLES FOR INDUSTRIAL SOURCES R6(R6H,H,T) REPORT INCOME AND PRICE INDEX FOR HOUSEHOLDS R7(R7H,PE,T) REPORT POLLUTION VARIABLES FOR CA ECONOMY * INITIAL VALUES OF ENDOGENOUS VARIABLES AGI0(H) DOF NOMINAL PER HOUSEHOLD ADJUSTED GROSS INCOME FOR PIT PURPOSES CG0(I,G) DOF REAL GOVERNMENT CONSUMPTION CH0(I) IMPLAN REAL PRIVATE CONSUMPTION CN0(I) IMPLAN REAL INVESTMENT BY SECTOR OF SOURCE CS0(C,H) DOF SHARE HOUSEHOLD CONSUMPTION SHARES CPI0(H) CALC PRICE CONSUMER PRICE INDICES CX0(I) IMPLAN REAL EXPORT CONSUMPTION DD0(Z) CALC REAL DOMESTIC DEMAND DS0(Z) CALC REAL DOMESTIC SUPPLY QUANTITIES E0(I) CALC REAL INFRASTRUCTURE SCALE VARIABLE FOR PRODUCTION FUNCTIONS FD0(F,Z) IMPLAN REAL FACTOR DEMAND GST0 CALC REAL TOTAL GOVERNMENT SPENDING INCLUDING FACTOR RENTALS GSED0 CALC REAL TOTAL STATE AND LOCAL EDUCATION SPENDING HH0(H) DOF HHDS NUMBER OF HOUSEHOLDS HN0(H) DOF HHDS NUMBER OF NONWORKING HOUSEHOLDS HW0(H) DOF HHDS NUMBER OF WORKING HOUSEHOLDS IGT0(G,G1) DOF NOMINAL INTER GOVERNMENTAL TRANSFERS ITC0(I) DOF NOMINAL INVESTMENT TAX CREDIT KS0(I) CALC REAL CAPITAL STOCK M0(I) IMPLAN REAL IMPORTS MI0(H) DOF REAL IN MIGRATION MO0(H) DOF REAL OUT MIGRATION N0(I) CALC REAL GROSS INVESTMENT BY SECTOR OF DESTINATION NKI0 CALC NOMINAL NET CAPITAL INFLOW P0(Z) CALC PRICE AGGREGATE PRICES PD0(I) CALC PRICE DOMESTIC PRICES PIT0(G,H) DOF NOMINAL TAX PER WORKING HOUSEHOLD PVA0(I) CALC PRICE VALUE ADDED PRICES PW0(I) CALC PRICE EXOGENOUS PRICES IN EXTERNAL MARKETS Q0(Z) DOF REAL SOCIAL ACCOUNTING MATRIX TOTALS R0(F,Z) IMPLAN PRICE INITIAL SECTORAL RENTAL RATE FOR FACTOR RA0(F) IMPLAN AVERAGE RENTAL RATES FOR FACTORS RR0(F,I) DOF PRICE RENTAL RATES INCLUDING TAXES S0(Z) DOF NOMINAL SAVINGS SPI0 CALC NOMINAL STATE PERSONAL INCOME TP0(H,G) DOF NOMINAL PER ELIGIBLE HOUSEHOLD TRANSFER PAYMENTS V0(I) IMPLAN REAL INTERMEDIATE DEMAND YD0(H) CALC NOMINAL AFTER TAX TOTAL HOUSEHOLD INCOMES Y0(Z) CALC NOMINAL HOUSEHOLD AND GOVERNMENT INCOMES TAXCRED(GI,H) TAX CREDIT FOR EXPERIMENTS DIRTI0(I,PE) ARB POLLUTION BY INDUSTRY AND POLLUTANT DIRTHH0(PE) ARB POLLUTION BY HOUSEHOLDS BY POLLUTANT; *---------------------------------------------------------------- * 3.3 CALCULATIONS OF PARAMETERS AND INITIAL VALUES *---------------------------------------------------------------- * SENSITIVITY OF MIGRATION TO PUBLIC EDUCATION SPENDING ETAED('HOUS0') = 0.5; ETAED('HOUS1') = 0.5; ETAED('HOUS2') = 0.5; ETAED('HOUS4') = 0.4; ETAED('HOUS6') = 0.3; ETAED('HOUS8') = 0.2; ETAED('HOUS9') = 0.1; ETAED('HOUSH') = 0.1; * POLICY WEIGHTS OF INFRASTRUCURE SPENDING KAPPA(GNS) = 1; * FOR SENSITIVITY ANALYSIS EXPERIMENTS TAXCRED(GI,H) = 0; * INVESTMENT SUPPLY ELASTICITY IMPOSED ETAI(I) = 20; * ETAI('TOBAC') = 0; * THE FOLLOWING SIX STEPS COMPRISE A SYSTEMATIC WAY TO BUILD A LARGE MATRIX ( IGTD(G,G) ) THAT CONTROLS INTER-GOVERNMENTAL TRANSFERS * THE ALTERNATIVE WOULD BE TO INPUT EACH NUMBER IN A 35x35 MATRIX * STEP 1: 1 = ENDOGENOUS (ALTHOUGH MANY OF THESE ARE RESET IN THE NEXT STEPS) IGTD(G,GT) = 1; * STEP 2: 2 = EXOGENOUS IGTD(G,'FSNON') = 2; IGTD(G,'CGENF') = 2; IGTD(GC,'CSOTH') = 2; IGTD(GL,'LSOTH') = 2; IGTD(GL,GC) = 2; * STEP 3: 3 = CA BUDGET BALANCING AND PROP 98 TRANSFERS IGTD(GC,'CGENF') = 3; IGTD('LSK14','CGENF') = 3; * STEP 4: 4 = FOR EXOGENOUS TRANSFER PAYMENTS IGTD('LSHTH','FSNON') = 4; IGTD('LSHTH','CGENF') = 4; IGTD('LSWEL','FSNON') = 4; IGTD('LSWEL','CGENF') = 4; * STEP 5: 0 = NOT ALLOWED FOR PAYMENTS BY GOVT SPENDING UNITS TO FACTOR TAXES EXCLUDED IGTD(GF,GX) = 0; IGTD(GF,GN) = 0; * STEP 6: 0 = NOT ALLOWED IF NOT IN ORIGINAL SAM (SEE MODEL CLOSURE) IGTD(G,G1)$( NOT SAM(G,G1) ) = 0; * CALCULATE COLUMN AND ROW TOTALS OF SAM TO COMPARE FOR BALANCE * THIS IS REDUNDANT IF THE SAM IS OK, BUT USEFUL IN CALIBRATION Q0(Z) = SUM(Z1,SAM(Z,Z1) ); Q0(Z) = SUM(Z1,SAM(Z1,Z) ); * READ IN ELASTICITY AND OTHER KEY PARAMETERS ETAE(I) = MISC(I,'ETAE'); ETAGS(I) = 0.1; ETAM(I) = MISC(I,'ETAM'); SIGMA(I) = MISC(I,'SIGMA') ; R0('CAPIT',I) = MISC(I,'R0') * 100; ETARA(H) = MISCH(H,'ETARA'); ETAPIT(H) = MISCH(H,'ETAPIT'); ETATP(H) = MISCH(H,'ETATP'); ETAYD(H) = MISCH(H,'ETAYD'); NRPG(H) = MISCH(H,'NRPG'); ETAU(H) = MISCH(H,'ETAU'); TAXBASE(G,H) = MISCG(G,H,'TAXBASE'); TAXBM(G,H) = MISCG(G,H,'TAXBM'); TAXSD(G,H) = MISCG(G,H,'TAXSD'); TAXOD(G,H) = MISCG(G,H,'TAXOD'); TAXPI(G,H) = MISCG(G,H,'TAXPI'); TAXCVC(G,H) = MISCG(G,H,'TAXCVC'); MTR(G,H) = MISCG(G,H,'MTR'); * READ IN REGULATORY PARAMETER REG1(I,J) = 1; REG2(I) = 1; REG3(I) = 1; * REG4K(I) = 1; * REG4L(I) = 1; REG5(I) = 0; REG6(I) = 0; * REG7K(I) = 0; * REG7L(I) = 0; * REG8(I) = 0; * REG9(I) = 0; * CROWD(I) = 0; * REG10(F,I) = 0; * REG11(F,I) = 1; REG12(I) = 1; REG13(I) = 1; REG14(I) = 1; * CALCULATE SALES AND EXCISE TAX RATES FROM SAM INFORMATION TAUQ(GS,I) = SAM(GS,I) / ( SUM(J, SAM(I,J) ) + SUM(C, SAM(I,C) ) + SUM(G, SAM(I,G) ) + SAM(I,'INVES') - SUM(GS1, SAM(GS1,I) ) ); * THEN SET EXPERIMENTAL TAX RATES EQUAL TO INITIAL TAX RATES TAUQX(GS,I) = TAUQ(GS,I); * DUTY, FACTOR AND HOUSEHOLD TAXES TAUM('FTDUT',I) = SAM('FTDUT',I) / SAM('ROW',I); TAUF(GF,F,I)$(SAM(F,I) AND TAUFF(GF,F)) = SAM(GF,I) / SAM(F,I); TAUF(GF,F,G)$(SAM(F,G) AND TAUFF(GF,F)) = SAM(GF,G) / SAM(F,G); TAUFX(GF,F,Z) = TAUF(GF,F,Z); TAUFH(GF,F)$TAUFF(GF,F) = SAM(GF,F) / SUM(Z, SAM(Z,F)); * SET DISTRIBUTION SHARES FOR ENDOGENOUS TAX TRANSFERS TAXS(G,GT)$( SUM(G1, SAM(G1,GT) ) - SUM(GF, SAM(GF,GT) ) ) = SAM(G,GT) / ( SUM(G1, SAM(G1,GT) ) - SUM(GF, SAM(GF,GT) ) ); * SET INITIAL INTER GOVERNMENTAL TRANSFERS IGT0(G,G1) = SAM(G,G1); IGT0(GF,G) = 0; * SET INITIAL PRICES TO UNITY PW0(I) = 1 / ( 1 + SUM(G, TAUM(G,I) ) ); P0(Z) = 1; PD0(I) = 1; CPI0(H) = 1; * NUMBER OF HOUSEHOLDS AND INITIAL TRANSFER PAYMENTS HH0(H) = MISCH(H,'HH0'); HW0(H) = MISCH(H,'HW0'); HN0(H) = HH0(H) - HW0(H); TP0(H,GW)$TPC(H,GW) = SAM(H,GW) / ( HN0(H) * TPC(H,GW) ); * FACTOR RENTALS JOBCOR = SUM(H, HW0(H) ) / SUM(Z, MISC(Z,'JOBS') ); R0('CAPIT',G) = 1; R0('LABOR',I) = SAM('LABOR',I) / MISC(I,'JOBS'); R0('LABOR',G)$MISC(G,'JOBS') = SAM('LABOR',G) / MISC(G,'JOBS'); FD0('LABOR',I) = MISC(I,'JOBS'); FD0('CAPIT',I) = SAM('CAPIT',I) / R0('CAPIT',I); FD0('LABOR',G) = MISC(G,'JOBS'); FD0('CAPIT',G) = SAM('CAPIT',G) / R0('CAPIT',G); KS0(I) = FD0('CAPIT',I); * SHARES FOUND IN THE SOCIAL ACCOUNTING MATRIX DATA A(Z,Z1) = SAM(Z,Z1) / Q0(Z1); AG(I,G)$(SUM(J, SAM(J,G) ) + SUM(F, SAM(F,G) ) + SUM(GF, SAM(GF,G) ) ) = SAM(I,G) / ( SUM(J, SAM(J,G) ) + SUM(F, SAM(F,G) ) + SUM(GF, SAM(GF,G) ) ); AG(F,G)$(SUM(I, SAM(I,G) ) + SUM(F1, SAM(F1,G) ) + SUM(GF, SAM(GF,G) ) ) = SAM(F,G) / ( SUM(I, SAM(I,G) ) + SUM(F1, SAM(F1,G) ) + SUM(GF, SAM(GF,G) ) ); * INITIAL MACRO VARIABLES: EXPORTS, IMPORTS, INTERMEDIATES, CONSUMPTION, GOVERNMENT, DEPRECIATION, INVESTMENT, DEMAND, SUPPLY CX0(I) = SAM(I,'ROW'); M0(I) = SAM('ROW',I) / PW0(I); V0(I) = SUM(J, SAM(I,J) / ( 1 + SUM(GS, TAUQ(GS,I) ) ) ); CH0(I) = SUM(C, SAM(I,C) / ( 1 + SUM(GS, TAUQ(GS,I) ) ) ); CG0(I,G) = SAM(I,G) / P0(I) / ( 1 + SUM(GS, TAUQ(GS,I) ) ); DEPR = SUM(I, SAM(I,'INVES') ) / SUM(I, KS0(I) ); N0(I) = KS0(I) * DEPR; CN0(I) = SUM(J, CCM(I,J) * N0(J) ) / P0(I) / ( 1 + SUM(GS, TAUQ(GS,I) ) ); DD0(I) = CH0(I) + SUM(G, CG0(I,G) ) + CN0(I) + V0(I); DS0(I) = DD0(I) + CX0(I) - M0(I); * PRODUCTION DATA AD(I,J) = SAM(I,J) / P0(I) / ( 1 + SUM(GS, TAUQ(GS,I) ) ) / DS0(J); ALPHACG(I,GNS) = CG0(I,GNS) / SUM(J, CG0(J,GNS) ); ALPHAFG(F,GNS) = FD0(F,GNS) / SUM(F1, FD0(F1,GNS) ); PVA0(I) = PD0(I) - SUM(J, AD(J,I) * P0(J) * ( 1 + SUM(GS, TAUQ(GS,J) ) ) ); RA0(F) = 1; E0(I) = 1; GST0 = SUM(GNS, KAPPA(GNS) * ( SUM(J, ALPHACG(J,GNS) * CG0(J,GNS) * P0(J) ) + SUM(F, ALPHAFG(F,GNS) * FD0(F,GNS) * R0(F,GNS) * RA0(F) ) ) ); * POLLUTION DATA PT(I,PE) = POLN1(I,PE); PTO(PSO,PE) = POLN2(PSO,PE); PII0(I,PE) = PT(I,PE)/DS0(I); PIHH0(PE) = SUM(H,HH0(H))/PTO('HH',PE); * MISCELLANEOUS INITIAL DATA NKI0 = SAM('INVES','ROW'); Y0(F) = Q0(F); Y0(H) = SUM(F, SAM(H,F) ); A(H,F) = SAM(H,F) / HW0(H) / Y0(F); TAUH(GH,H) = SAM(GH,H) / HH0(H); S0(H) = SAM('INVES',H); YD0(H) = SUM(C, SAM(C,H) ) + S0(H); Y0(G) = SUM(Z, SAM(G,Z) ) - SUM(G1, IGT0(G,G1) ); AGI0(H) = SUM(F, OMEGA(F) * SAM(H,F) ) / HW0(H); S0(G) = SAM('INVES',G); SPI0 = SUM(H, Y0(H) ) + SUM((H,GW), TP0(H,GW) * HN0(H) * TPC(H,GW) ); PIT0(GI,H) = SAM(GI,H) / HW0(H); MI0(H) = HH0(H) * 0.09; MO0(H) = HH0(H) * 0.09; * INVESTMENT TAX CREDIT AND CORRECTION TO GROSS CA PROFITS TAXES FITC(F,G) = 0; FITC('CAPIT','CTBAC') = 1; ITC0(I) = SUM(J, N0(I) * CCM(J,I) / ( 1 + SUM(GS, TAUQ(GS,J) ) ) * ITCE(J,I) ); TAUF('CTBAC','CAPIT',I) = ( SAM('CTBAC',I) + ITC0(I) ) / SAM('CAPIT',I); TAUFX('CTBAC','CAPIT',I) = TAUF('CTBAC','CAPIT',I); * CES PRODUCTION FUNCTION CALIBRATION ALPHA(F,I) = ( SAM(F,I) + SUM(GF, TAUFF(GF,F) * SAM(GF,I) ) ) / ( SUM(F1, SAM(F1,I) )+ SUM(GF, SAM(GF,I) ) ); RR0(F,I) = R0(F,I) * RA0(F) * ( 1 + SUM(GF, TAUFX(GF,F,I) ) ) - SUM(GF, FITC(F,GF) * ITC0(I) ) / FD0(F,I); * INITIAL CALIBRATION OF CONSUMPTION FUNCTIONS SIGMAH(H) = SAM('INVES',H) / YD0(H); CS0(C,H) = SAM(C,H) / SUM(C1, SAM(C1,H) ); BETA('CFUEL') = BETA('CFUEL') - SUM(C1, BETA(C1) ); ALPHA0(C,H) = CS0(C,H) - BETA(C) * LOG( YD0(H) * ( 1 - SIGMAH(H) ) ); PHI(I,C) = SAM(I,C) / SUM(J, SAM(J,C) ); LOOP(C, LOOP(C1$( ORD(C1) GT ORD(C) ), LAMBDA(C,C1) = LAMBDA(C1,C) ) ); LAMBDA(C,C) = LAMBDA(C,C) - SUM(C1, LAMBDA(C1,C) ); * INITIAL GOVERNMENT SPENDING ON PUBLIC EDUCATION GSED0 = SUM(GED, SUM(G, IGT0(GED,G) ) ); *---------------------------------------------------------------- * 4. VARIABLES *---------------------------------------------------------------- * 4.1 VARIABLE DECLARATION *---------------------------------------------------------------- VARIABLES AGI(H) THOUSAND DOLLARS AVERAGE AGI FOR PIT PURPOSES CG(I,G) BILLION DOLLARS PUBLIC CONSUMPTION CH(I) BILLION DOLLARS PRIVATE CONSUMPTION CN(I) BILLION DOLLARS GROSS INVESTMENT BY SECTOR OF SOURCE CPI(H) PRICE INDEX 1 CONSUMER PRICE INDEX CS(C,H) SHARES TOTAL 1 CONSUMPTION SHARES OF YD LESS SAVINGS CX(I) BILLION DOLLARS EXPORT DEMAND DD(I) BILLION DOLLARS DOMESTIC DEMAND DIRTI(I,PE) UNKNOWN TOTAL POLLUTION DIRTHH(PE) UNKNOWN TOTOL HOUSEHOLD POLLUTION DS(I) BILLION DOLLARS DOMESTIC SUPPLY E(I) NUMBER INFRASTRUCTURE SCALE VARIBALE IN PRODUCTION FUNCTIONS FD(F,Z) BILLION DOLLARS SECTORAL FACTOR DEMAND GST BILLION DOLLARS TOTAL GOVERNMENT SPENDING INCLUDING FACTOR RENTALS GSED BILLION DOLLARS TOTAL GOVERNMENT SPENDING ON EDUCATION HH(H) MILLIONS NUMBER OF HOUSEHOLDS HN(H) MILLIONS NUMBER OF NONWORKING HOUSEHOLDS HW(H) MILLIONS NUMBER OF WORKING HOUSEHOLDS IGT(G,G1) BILLION DOLLARS INTER GOVERNMENTAL TRANSFERS ITC(I) BILLION DOLLARS INVESTMENT TAX CREDIT AMOUNT KS(I) 100 BILLION DOLLARS CAPITAL STOCK M(I) BILLION DOLLARS IMPORTS N(I) BILLION DOLLARS GROSS INVESTMENT BY SECTOR OF DESTINATION NKI BILLION DOLLARS NET CAPITAL INFLOW P(Z) PRICE AGGREGATE DOMESTIC PRICE PAID BY PURCHASERS PD(I) PRICE DOMESTIC PRICE RECEIVED BY SUPPLIERS PIT(G,H) THOUSAND DOLLARS PER HOUSEHOLD INCOME TAXES PVA(I) PRICE VALUE ADDED PRICE RA(F) PRICE ECONOMY WIDE SCALAR RENTAL RATES OF FACTORS R(F,Z) PRICE SECTORAL RENTAL RATES RR(F,Z) PRICE RENTAL RATES INCLUDING TAXES S(Z) BILLION DOLLARS SAVINGS SPI BILLION DOLLARS STATE PERSONAL INCOME TP(H,G) THOUSAND DOLLARS GOVERNMENT TRANSFER PAYMENTS V(I) BILLION DOLLARS INTERMEDIATE GOODS Y(Z) BILLION DOLLARS GROSS INCOMES YD(H) BILLION DOLLARS AFTER TAX TOTAL HOUSEHOLD INCOMES DIRTI(I,PE) DIRTHH(PE); *---------------------------------------------------------------- * 4.2 INITIALIZATION OF VARIABLES *---------------------------------------------------------------- P.L(Z) = P0(Z); PD.L(I) = PD0(I); PVA.L(I) = PVA0(I); RA.L(F) = RA0(F); R.L(F,Z) = R0(F,Z); CPI.L(H) = CPI0(H); DS.L(I) = DS0(I); DD.L(I) = DD0(I); V.L(I) = V0(I); FD.L(F,Z) = FD0(F,Z); HH.L(H) = HH0(H); HN.L(H) = HN0(H); HW.L(H) = HW0(H); KS.L(I) = KS0(I); CN.L(I) = CN0(I); N.L(I) = N0(I); CX.L(I) = CX0(I); M.L(I) = M0(I); NKI.L = NKI0; TP.L(H,G) = TP0(H,G); Y.L(Z) = Y0(Z); YD.L(H) = YD0(H); PIT.L(G,H) = PIT0(G,H); IGT.L(G,G1) = IGT0(G,G1); CH.L(I) = CH0(I); CG.L(I,G) = CG0(I,G); S.L(Z) = S0(Z); SPI.L = SPI0; ITC.L(I) = ITC0(I); AGI.L(H) = AGI0(H); RR.L(F,I) = RR0(F,I); CS.L(C,H) = CS0(C,H); E.L(I) = E0(I); GST.L = GST0; GSED.L = GSED0; DIRTI.L(I,PE) = DS0(I)*PII0(I,PE); DIRTHH.L(PE) = SUM(H,HH0(H))*PIHH0(PE); *---------------------------------------------------------------- * 4.3 REMOVING TRACE NUMBERS FOR COMPUTATIONAL PURPOSES *---------------------------------------------------------------- P.L(Z)$(ABS(P.L(Z)) LT 0.00000001) = 0; PD.L(I)$(ABS(PD.L(I)) LT 0.00000001) = 0; PVA.L(I)$(ABS(PVA.L(I)) LT 0.00000001) = 0; RA.L(F)$(ABS(RA.L(F)) LT 0.00000001) = 0; R.L(F,Z)$(ABS(R.L(F,Z)) LT 0.00000001) = 0; CPI.L(H)$(ABS(CPI.L(H)) LT 0.00000001) = 0; DS.L(I)$(ABS(DS.L(I)) LT 0.00000001) = 0; DD.L(I)$(ABS(DD.L(I)) LT 0.00000001) = 0; E.L(I)$(ABS(E.L(I)) LT 0.00000001) = 0; V.L(I)$(ABS(V.L(I)) LT 0.00000001) = 0; FD.L(F,Z)$(ABS(FD.L(F,Z)) LT 0.00000001) = 0; GST.L$(ABS(GST.L) LT 0.00000001) = 0; HH.L(H)$(ABS(HH.L(H)) LT 0.00000001) = 0; HN.L(H)$(ABS(HN.L(H)) LT 0.00000001) = 0; HW.L(H)$(ABS(HW.L(H)) LT 0.00000001) = 0; KS.L(I)$(ABS(KS.L(I)) LT 0.00000001) = 0; CN.L(I)$(ABS(CN.L(I)) LT 0.00000001) = 0; N.L(I)$(ABS(N.L(I)) LT 0.00000001) = 0; CX.L(I)$(ABS(CX.L(I)) LT 0.00000001) = 0; M.L(I)$(ABS(M.L(I)) LT 0.00000001) = 0; NKI.L$(ABS(NKI.L) LT 0.00000001) = 0; TP.L(H,G)$(ABS(TP.L(H,G)) LT 0.00000001) = 0; Y.L(Z)$(ABS(Y.L(Z)) LT 0.00000001) = 0; YD.L(H)$(ABS(YD.L(H)) LT 0.00000001) = 0; PIT.L(G,H)$(ABS(PIT.L(G,H)) LT 0.00000001) = 0; IGT.L(G,G1)$(ABS(IGT.L(G,G1)) LT 0.00000001) = 0; CH.L(I)$(ABS(CH.L(I)) LT 0.00000001) = 0; CG.L(I,G)$(ABS(CG.L(I,G)) LT 0.00000001) = 0; S.L(Z)$(ABS(S.L(Z)) LT 0.00000001) = 0; SPI.L$(ABS(SPI.L) LT 0.00000001) = 0; AGI.L(H)$(ABS(AGI.L(H)) LT 0.00000001) = 0; *---------------------------------------------------------------- * 4.3 SETTING COMPUTATIONALLY USEFUL BOUNDS ON VARIABLES (TO HELP THE SOLVER) *---------------------------------------------------------------- AGI.LO(H) = AGI0(H) / 1000; AGI.UP(H) = AGI0(H) * 1000; * CG.LO(I,G) = CG.L(I,G) / 1000; CG.UP(I,G) = CG.L(I,G) * 1000; CH.LO(I) = CH.L(I) / 1000; CH.UP(I) = CH.L(I) * 1000; CN.LO(I) = 0; CPI.LO(H) = CPI.L(H) / 1000; CPI.UP(H) = CPI.L(H) * 1000; CS.LO(C,H) = CS0(C,H) / 1000; CS.UP(C,H) = 1 ; CX.LO(I) = CX.L(I) / 1000; CX.UP(I) = CX.L(I) * 1000; DD.LO(I) = DD.L(I) / 1000; DD.UP(I) = DD.L(I) * 1000; * DS.LO(I) = DS.L(I) / 1000; DS.UP(I) = DS.L(I) * 1000; E.LO(I) = 0; E.UP(I) = E.L(I) * 2; FD.LO(F,Z) = FD.L(F,Z) / 1000; FD.UP(F,Z) = FD.L(F,Z) * 1000; GST.LO = GST.L / 1000; GST.UP = GST.L * 1000; HH.LO(H) = HH.L(H) / 1000; HH.UP(H) = HH.L(H) * 1000; HN.LO(H) = HN.L(H) / 1000; HN.UP(H) = HN.L(H) * 1000; HW.LO(H) = HW.L(H) / 1000; HW.UP(H) = HW.L(H) * 1000; * IGT.LO(G,G1) = IGT.L(G,G1) / 1000; IGT.UP(G,G1) = IGT.L(G,G1) * 1000; * ITC.LO(I) = ITC.L(I) / 1000; ITC.UP(I) = ITC.L(I) * 1000; KS.LO(I) = KS.L(I) / 1000; KS.UP(I) = KS.L(I) * 1000; M.LO(I) = M.L(I) / 1000; M.UP(I) = M.L(I) * 1000; N.LO(I) = 0; * NKI -- SIGN CAN CHANGE, THUS BOUNDS ARE INAPPROPRIATE P.LO(Z) = P.L(Z) / 1000; P.UP(Z) = P.L(Z) * 1000; PD.LO(I) = PD.L(I) / 1000; PD.UP(I) = PD.L(I) * 1000; * PIT.LO(GI,H) = 0; PVA.LO(I) = PVA.L(I) / 1000; PVA.UP(I) = PVA.L(I) * 1000; R.LO(F,I) = R.L(F,I) / 2 ; R.UP(F,I) = R.L(F,I) * 2; RA.LO(F) = RA.L(F) / 1000; RA.UP(F) = RA.L(F) * 1000; * S -- SIGN CAN CHANGE, THUS BOUNDS ARE INAPPROPRIATE TP.LO(H,G) = TP.L(H,G) / 1000; TP.UP(H,G) = TP.L(H,G) * 1000; V.LO(I) = V.L(I) / 1000; V.UP(I) = V.L(I) * 1000; Y.LO(Z) = Y.L(Z) / 1000; Y.UP(Z) = Y.L(Z) * 1000; YD.LO(H) = YD.L(H) / 1000; YD.UP(H) = YD.L(H) * 1000; RR.LO(F,I) = RR.L(F,I) / 1000; RR.UP(F,I) = RR.L(F,I) * 1000; *---------------------------------------------------------------- * 5. PRE-MODEL CHECK OF PARAMETERS AND INITIAL VALUES OF VARIABLES *---------------------------------------------------------------- * 5.1 PRINTING CALCULATED PARAMETERS AND EXOGENOUS VARIABLES *---------------------------------------------------------------- * DISPLAY DEPR, JOBCOR, FD0, TAUM, TAUF, TAUFH, ALPHA, ALPHACG, ALPHAFG, CG0, FD0, GST0, R0, RR0, * AG, AD, A, ALPHA, SIGMA, CS0, ALPHA0, SIGMAH, LAMBDA, P0; *---------------------------------------------------------------- * 5.2 SAVING INITIAL VALUES FOR VARIABLES *---------------------------------------------------------------- R1('BAC','BASE') = Y.L('CTBAC'); R1('PIT','BASE') = Y.L('CTPIT'); R1('SAU','BASE') = Y.L('CTSAU'); R1('GFREV','BASE') = Y.L('CGENF') + SUM(G, IGT.L('CGENF',G) ); R1('SFREV','BASE') = SUM(GSF, Y.L(GSF) - IGT.L('CGENF',GSF) ); R1('STATIC','BASE') = 0; R1('DGF','BASE') = 0; R1('DSF','BASE') = 0; R1('DDRE','BASE') = 0; R1('PDRE','BASE') = 0; R1('SPI','BASE') = SPI.L; R1('D1SPI','BASE') = 0; R1('D2SPI','BASE') = 0; R1('OUT','BASE') = SUM(I,DS.L(I)); R1('D1OUT','BASE') = 0; R1('D2OUT','BASE') = 0; R1('CPI','BASE') = SUM(H, CPI.L(H)*HH.L(H)/SUM(H1, HH.L(H1))); R1('D1CPI','BASE') = 0; R1('D2CPI','BASE') = 0; R1('GN','BASE') = SUM(I, N.L(I) ); R1('D1GN','BASE') = 0; R1('D2GN','BASE') = 0; R1('POP','BASE') = SUM(H, HH.L(H) ); R1('D1POP','BASE') = 0; R1('D2POP','BASE') = 0; R1('W','BASE') = RA.L('LABOR') / RA0('LABOR') * 100; R1('D1W','BASE') = 0; R1('D2W','BASE') = 0; R1('DEPR','BASE') = DEPR; R1('R','BASE') = SUM(I, R.L('CAPIT',I) * KS.L(I) ) / SUM(I, R0('CAPIT',I) * KS.L(I) ) * 100; R1('D1R','BASE') = 0; R1('D2R','BASE') = 0; R1('LD','BASE') = SUM(Z, FD.L('LABOR',Z) ); R1('D1LD','BASE') = 0; R1('D2LD','BASE') = 0; R1('KD','BASE') = SUM(Z, FD.L('CAPIT',Z) ); R1('D1KD','BASE') = 0; R1('D2KD','BASE') = 0; R1('GFSAV','BASE') = S.L('CGENF'); R1('D1GFSAV','BASE') = 0; R1('D2GFSAV','BASE') = 0; R1('MIC','BASE') = SUM(I, ITC.L(I)); R1('PROP98','BASE') = IGT.L('LSK14','CGENF'); R3('IGT',G,'BASE') = IGT.L(G,'CGENF'); R3('GOVS',G,'BASE') = S.L(G); R3('Y',H,'BASE') = YD.L(H); R3('Y',G,'BASE') = Y.L(G); R4('INTERMED',I,'BASE') = SUM(J,REG1(J,I))/30 - 1; R4('DS',I,'BASE') = DS.L(I); R4('D1DS',I,'BASE') = 0; R4('D2DS',I,'BASE') = 0; R4('FDL',I,'BASE') = FD.L('LABOR',I); R4('D1FDL',I,'BASE') = 0; R4('D2FDL',I,'BASE') = 0; R4('FDK',I,'BASE') = FD.L('CAPIT',I); R4('D1FDK',I,'BASE') = 0; R4('D2FDK',I,'BASE') = 0; R4('P',I,'BASE') = P.L(I); R4('D1P',I,'BASE') = 0; R4('D2P',I,'BASE') = 0; R4('PVA',I,'BASE') = PVA.L(I); R4('D1PVA',I,'BASE') = 0; R4('D2PVA',I,'BASE') = 0; R4('PD',I,'BASE') = PD.L(I); R4('M',I,'BASE') = M.L(I); R4('D1M',I,'BASE') = 0; R4('D2M',I,'BASE') = 0; R4('X',I,'BASE') = CX.L(I); R4('D1X',I,'BASE') = 0; R4('D2X',I,'BASE') = 0; R4('RRL',I,'BASE') = R.L('LABOR',I)/R0('LABOR',I) * 100; R4('RRK',I,'BASE') = R.L('CAPIT',I) * KS.L(I) / R0('CAPIT',I) * KS.L(I) * 100; R4('D1RRL',I,'BASE') = 0; R4('D2RRL',I,'BASE') = 0; R4('D1RRK',I,'BASE') = 0; R4('D2RRK',I,'BASE') = 0; R5('PII0',I,PE,'BASE') = PII0(I,PE); R5('DIRTI',I,PE,'BASE') = DIRTI.L(I,PE); R5('D1DIRTI',I,PE,'BASE') = 0; R5('D2DIRTI',I,PE,'BASE') = 0; R6('YD',H,'BASE') = YD.L(H)/HH.L(H); R6('D1YD',H,'BASE') = 0; R6('D2YD',H,'BASE') = 0; R6('YDR',H,'BASE') = YD.L(H)/HH.L(H)/CPI.L(H); R6('D1YDR',H,'BASE') = 0; R6('D2YDR',H,'BASE') = 0; R6('YR',H,'BASE') = Y.L(H)/HH.L(H)/CPI.L(H); R6('D1YR',H,'BASE') = 0; R6('D2YR',H,'BASE') = 0; R6('Y',H,'BASE') = Y.L(H)/HH.L(H); R6('D1Y',H,'BASE') = 0; R6('D2Y',H,'BASE') = 0; R6('CPIH',H,'BASE') = CPI.L(H); R6('D1CPIH',H,'BASE') = 0; R6('D2CPIH',H,'BASE') = 0; R7('POLN',PE,'BASE') = SUM(I, DIRTI.L(I,PE)); R7('D1POLN',PE,'BASE') = 0; R7('D2POLN',PE,'BASE') = 0; *---------------------------------------------------------------- * 6. EQUATIONS *---------------------------------------------------------------- * 6.1 EQUATION DECLARATION *---------------------------------------------------------------- EQUATIONS * HOUSEHOLDS CPIEQ(H) 1.01 CONSUMER PRICE INDICES YEQ(H) 1.02 HOUSEHOLD GROSS INCOME YDEQ(H) 1.03 HOUSEHOLD DISPOSABLE INCOME CSEQ(C,H) 1.04 HOUSEHOLD CONSUMPTION SHARES CHEQ(I) 1.05 TOTAL CONSUMPTION OF GOODS AND SERVICES CCPEQ(C) 1.06 COMPOSITE COMMODITY PRICES SHEQ(H) 1.07 HOUSEHOLD SAVINGS * PRODUCERS PVAEQ(I) 2.01 VALUE ADDED PRICE PCEQ(I) 2.02 COST FUNCTION GSTEQ 2.03 TOTAL STATE GOVERNMENT SPENDING EEQ(I) 2.04 INFRASTRUCTURE SCALE VARIABLE RREQ(F,I) 2.05 RENTAL RATES INCLUDING TAXES FDEQ(F,I) 2.06 FACTOR DEMAND VEQ(I) 2.07 DEMAND FOR INTERMEDIATE GOODS BY SOURCE YFEQ(F) 2.08 FACTOR INCOME * TRADE XEQ(I) 3.01 EXPORT DEMAND MEQ(I) 3.02 IMPORT SUPPLY PEQ(I) 3.03 AVERAGE PRICE FACED BY DOMESTIC CONSUMPTION NKIEQ 3.04 NET CAPITAL INFLOW * INVESTMENT NEQ(I) 4.01 INVESTMENT BY SECTOR OF DESTINATION CNEQ(I) 4.02 INVESTMENT BY SECTOR OF SOURCE KSEQ(I) 4.03 DESIRED CAPITAL STOCK ITCEQ(I) 4.04 INVESTMENT TAX CREDIT EARNED * LABOR SUPPLY AND MIGRATION LSEQ(H) 5.01 LABOR SUPPLY POPEQ(H) 5.02 MIGRATION ANEQ(H) 5.03 NUMBER OF NON-WORKING HOUSEHOLDS * HOUSEHOLD INCOME TAXATION AGIEQ(H) 6.01 ADJUSTED GROSS INCOMES PITEQ(GI,H) 6.02 INCOME TAXES * GOVERNMENT YGEQ(G) 7.01 GOVERNMENT TAX INCOMES CGNEQ(I,GN) 7.02 ENDOGENOUS GOVERNMENT CONSUMPTION GFNEQ(F,GN) 7.03 ENDOGENOUS GOVERNMENT FACTOR RENTALS CGXEQ(I,GX) 7.04 EXOGENOUS GOVERNMENT CONSUMPTION GFXEQ(F,GX) 7.05 EXOGENOUS GOVERNMENT FACTOR RENTALS TDEQ(G,GT) 7.06 DISTRIBUTION OF TAX REVENUES TO SPENDING DESTINATIONS TPGTEQ(GW,G1) 7.07 IGT FOR TRANSFER PAYMENTS GFBALEQ 7.08 BALANCE OF GENERAL FUND TO WELFARE PAYMENTS GSEQ(G) 7.09 GOVERNMENT SAVINGS * PROP98 7.10 PROPOSITION 98 TRANSFER FOR EDUCATION -- TEST 2 PROP98 7.11 PROPOSITION 98 TRANSFER FOR EDUCATION -- TEST 3 GSEDEQ 7.12 EDUCATION SPENDING * MODEL CLOSURE SPIEQ 8.01 ARTIFICIAL OBJECTIVE FUNCTION -- TOTAL STATE PERSONAL INCOMES LMEQ 8.02 LABOR MARKET EQUILIBRIUM KMEQ(I) 8.03 CAPITAL MARKETS EQUILIBRIUM GMEQ(I) 8.04 GOODS AND SERVICES MARKETS EQUILIBRIUM DDEQ(I) 8.05 DOMESTIC DEMAND DEFINITION * POLLUTION DIRTIEQ(I,PE) DIRTHHEQ(PE); * FOR REFERENCE PURPOSES THE FOLLOWING ARE LISTED ALONG WITH EQUATIONS, ALTHOUGH THE GAMS SPECIFICATION OF FIXING VARIABLES TO LEVELS * WAS USED FOR ITS COMPUTATIONAL PROPERTIES * 9.01 FIX PIT FOR NON INCOME TAX UNITS TO ZERO * 9.02 FIX INTER GOVERNMENTAL TRANSFERS TO ZERO IF NOT IN ORIGINAL SAM * 9.03 FIX EXOGENOUS INTERGOVERNMENTAL TRANSFERS * 9.04 FIX GOVERNMENT DEMAND FOR GOODS AND SERVICES TO ZERO IF NOT IN ORIGINAL DATA * 9.05 FIX GOVERNMENT DEMAND FOR FACTORS TO ZERO IF NOT IN ORIGINAL DATA * 9.06 FIX INTER SECTORAL WAGE DIFFERENTIALS * 9.07 FIX GOVERNMENT RENTAL RATE FOR CAPITAL TO INITIAL LEVEL * 9.08 FIX ECONOMY WIDE SCALAR FOR CAPITAL * 9.09 FIX EXOGENOUS TRANSFER PAYMENT LEVELS * 9.10 FIX TRANSFER PAYMENTS TO ZERO IF NOT IN ORIGINAL DATA *---------------------------------------------------------------- * 6.2 EQUATION ASSIGNMENT *---------------------------------------------------------------- *---------------------------------------------------------------- * 6.2.1 HOUSEHOLDS *---------------------------------------------------------------- * 1.01 CONSUMER PRICE INDICES CPIEQ(H).. LOG( CPI(H) ) =E= SUM(C, CS(C,H) * LOG( P(C) ) ); * 1.02 HOUSEHOLD GROSS INCOME YEQ(H).. Y(H) =E= SUM(F, A(H,F) * HW(H) / SUM(H1, A(H1,F) * HW(H1) )* Y(F) * ( 1 - SUM(G, TAUFH(G,F) ) ) ); * 1.03 HOUSEHOLD DISPOSABLE INCOME YDEQ(H).. YD(H) =E= Y(H) - SUM(GI, PIT(GI,H) ) * HW(H) - SUM(G, TAUH(G,H) * HH(H) ) + SUM(G, TP(H,G) * HN(H) * TPC(H,G) ); * 1.04 HOUSEHOLD CONSUMPTION SHARES CSEQ(C,H).. CS(C,H) =E= ALPHA0(C,H) + SUM(C1, LAMBDA(C1,C) * LOG( P(C1) ) ) + BETA(C) * LOG ( YD(H) * ( 1 - SIGMAH(H) ) / CPI(H) ); * 1.05 TOTAL CONSUMPTION OF GOODS AND SERVICES BY HOUSEHOLDS CHEQ(I).. CH(I) =E= SUM(C, PHI(I,C) * SUM(H, CS(C,H) * ( YD(H) - S(H) ) ) ) / ( P(I) * ( 1 + SUM(GS, TAUQX(GS,I) ) + REG6(I) ) *(1 + REG5(I) ) ); * 1.06 COMPOSITE COMMODITY PRICES CCPEQ(C).. P(C) =E= SUM(I, PHI(I,C) * P(I) * ( 1 + SUM(GS, TAUQX(GS,I) ) + REG6(I) )*(1 + REG5(I) ) ) / SUM(I, PHI(I,C) * P0(I) * ( 1 + SUM(GS, TAUQ(GS,I) ) )*(1 + REG5(I) ) ); * 1.07 HOUSEHOLD SAVINGS SHEQ(H).. S(H) =E= SIGMAH(H) * YD(H); *---------------------------------------------------------------- * 6.2.2 PRODUCERS *---------------------------------------------------------------- * 2.01 VALUE ADDED PRICE PVAEQ(I).. PVA(I) =E= PD(I) - SUM(J, AD(J,I)*REG1(J,I) * P(J) * ( 1 + SUM(GS, TAUQX(GS,J) ) + REG6(I) )) *(1 + REG5(I) ); * 2.02 UNIT COST FUNCTION PCEQ(I).. PVA(I) =E= 1 / E(I) * PVA0(I) * SUM(F, ALPHA(F,I) * ( RR(F,I) / RR0(F,I) ) ** ( 1 - SIGMA(I) ) ) ** ( 1 / ( 1 - SIGMA(I) ) ); * 2.03 TOTAL GOVERNMENT SPENDING (CONSUMPTION SPENDING AND FACTOR RENTAL) GSTEQ.. GST =E= SUM(GNS, KAPPA(GNS) * ( SUM(J, ALPHACG(J,GNS) * CG(J,GNS) * P0(J) ) + SUM(F, ALPHAFG(F,GNS) * FD(F,GNS) * R0(F,GNS) * RA0(F) ) ) ); * 2.04 INFRASTRUCTURE VARIABLE EEQ(I).. E(I) =E= E0(I) * ( GST / GST0 ) ** ETAGS(I); * 2.05 RENTAL RATES INCLUDING TAXES RREQ(F,I).. RR(F,I) =E= R(F,I) * RA(F) * ( 1 + SUM(GF, TAUFX(GF,F,I) ) ) - SUM(GF, FITC(F,GF) * ITC(I) ) / FD(F,I); * 2.06K FACTOR DEMAND FDEQ(F,I).. FD(F,I) =E= E(I) * FD0(F,I) * DS(I) / DS0(I) * ( ( RR0(F,I) * PVA(I) ) / ( RR(F,I) * PVA0(I) ) ) ** SIGMA(I); * 2.06L LABOR FACTOR DEMAND * FDLEQ(F,I).. FD('LABOR',I) =E= E(I) * REG4L(I) * (FD0('LABOR',I) + REG7L(I)) * DS(I) / DS0(I) * ( ( RR0('LABOR',I) * PVA(I) ) / ( RR('LABOR',I) * PVA0(I) ) ) ** SIGMA(I); * 2.07 DEMAND FOR INTERMEDIATE GOODS BY SOURCE VEQ(I).. V(I) =E= SUM(J, AD(I,J)*REG1(I,J) * DS(J) ); * 2.08 FACTOR INCOME YFEQ(F).. Y(F) =E= SUM(Z, R(F,Z) * RA(F) * FD(F,Z) ); *---------------------------------------------------------------- * 6.2.3 TRADE *---------------------------------------------------------------- * 3.01 EXPORT DEMAND XEQ(I).. CX(I) =E= CX0(I) * ( PD(I) / (PD0(I) * (REG14(I))) ) ** ETAE(I); * 3.02 IMPORT SUPPLY MEQ(I).. M(I) =E= REG3(I)*M0(I) * ( PD(I) / (PD0(I) * REG14(I)) ) ** ETAM(I); * 3.03 AVERAGE PRICE FACED BY DOMESTIC CONSUMPTION PEQ(I).. P(I) =E= ( ( DS(I) - CX(I) ) * PD(I) + M(I) * REG2(I)*PW0(I) * ( 1 + SUM(G, TAUM(G,I) ) ) ) / ( DS(I) - CX(I) + M(I) ); * 3.04 NET CAPITAL INFLOW NKIEQ.. NKI =E= SUM(I, M(I) * PW0(I) ) - SUM(I, CX(I) * PD(I) ); *---------------------------------------------------------------- * 6.2.4 INVESTMENT *---------------------------------------------------------------- * 4.01 INVESTMENT BY SECTOR OF DESTINATION NEQ(I).. N(I) =E= KS(I) * DEPR; * 4.02 INVESTMENT BY SECTOR OF SOURCE CNEQ(I).. P(I) * ( 1 + SUM(GS, TAUQX(GS,I) ) + REG6(I) )*(1 + REG5(I) ) * CN(I) =E= SUM(J, CCM(I,J) * N(J) ); * 4.03 DESIRED CAPITAL STOCK KSEQ(I).. KS(I) =E= REG13(I) * KS0(I) * ( R('CAPIT',I) / R0('CAPIT',I) ) ** ETAI(I) - (1 - REG12(I))* KS0(I); * 4.04 INVESTMENT TAX CREDIT EARNED ITCEQ(I).. ITC(I) =E= SUM(J, N(I) * CCM(J,I) / ( 1 + SUM(GS, TAUQX(GS,J) ) + REG6(I) )*(1 + REG5(I) ) * ITCE(J,I) ); *---------------------------------------------------------------- * 6.2.5 LABOR SUPPLY AND MIGRATION *---------------------------------------------------------------- * 5.01 LABOR SUPPLY LSEQ(H).. HW(H) / HH(H) =E= HW0(H) / HH0(H) * ( ( RA('LABOR') / RA0('LABOR') ) / ( CPI(H) / CPI0(H) ) ) ** ETARA(H) * ( SUM(GI, PIT(GI,H) ) / SUM(GI, PIT0(GI,H) ) ) ** ETAPIT(H) * ( SUM(G, TP(H,G) / CPI(H) ) / SUM(G, TP0(H,G) / CPI0(H) ) ) ** ETATP(H); * 5.02 MIGRATION POPEQ(H).. HH(H) =E= HH0(H) * NRPG(H) + MI0(H) * ( ( YD(H) / HH(H) ) / ( YD0(H) / HH0(H) ) / ( CPI(H) / CPI0(H) ) ) ** ETAYD(H) * ( ( HN(H) / HH(H) ) / ( HN0(H) / HH0(H) ) ) ** ETAU(H) * ( GSED / GSED0 ) ** ETAED(H) - MO0(H) * ( ( YD0(H) / HH0(H) ) / ( YD(H) / HH(H) ) / ( CPI0(H) / CPI(H) ) ) ** ETAYD(H) * ( ( HN0(H) / HH0(H) ) / ( HN(H) / HH(H) ) ) ** ETAU(H) * ( GSED / GSED0 ) ** ETAED(H); * 5.03 NUMBER OF NON-WORKING HOUSEHOLDS ANEQ(H).. HN(H) =E= HH(H) - HW(H); *---------------------------------------------------------------- * 6.2.6 HOUSEHOLD INCOME TAXATION *---------------------------------------------------------------- * 6.01 ADJUSTED GROSS INCOMES AGIEQ(H).. AGI(H) =E= SUM(F, A(H,F) * HW(H) / SUM(H1, A(H1,F) * HW(H1) ) * OMEGA(F) * Y(F) * ( 1 - SUM(G, TAUFH(G,F) ) ) ) / HW(H); * 6.02 INCOME TAXES PITEQ(GI,H).. PIT(GI,H) =E= ( TAXBASE(GI,H) + ( AGI(H) - TAXBM(GI,H)- TAXSD(GI,H) - ( TAXOD(GI,H) + SUM(GI1, ATAX(GI1,GI) * PIT(GI1,H) ) ) * TAXPI(GI,H) ) * MTR(GI,H) ) * TAXCVC(GI,H) - TAXCRED(GI,H) ; *---------------------------------------------------------------- * 6.2.7 GOVERNMENT *---------------------------------------------------------------- * 7.01 GOVERNMENT TAX INCOMES YGEQ(G).. Y(G) =E= SUM((I,J), TAUQX(G,I) * P(I) * AD(I,J) * DS(J) ) + SUM(I, TAUM(G,I) * M(I) * PW0(I) ) + SUM(I, TAUQX(G,I) * CH(I) * P(I) ) + SUM(I, TAUQX(G,I) * CN(I) * P(I) ) + SUM((G1,I), TAUQX(G,I) * CG(I,G1) * P(I) ) + SUM((F,I), TAUFX(G,F,I) * RA(F) * R(F,I) * FD(F,I) ) + SUM((F,G1), TAUFX(G,F,G1) * RA(F) * R(F,G1) * FD(F,G1) ) + SUM(F, TAUFH(G,F) * Y(F) ) + SUM(H, PIT(G,H) * HW(H) ) + SUM(H, TAUH(G,H) * HH(H) ) + SAM(G,'INVES') - SUM((I,F), FITC(F,G) * ITC(I)); * 7.02 ENDOGENOUS GOVERNMENT CONSUMPTION CGNEQ(I,GN).. P(I) * ( 1 + SUM(GS, TAUQX(GS,I) ) + REG6(I) ) *(1 + REG5(I) )* CG(I,GN) =E= AG(I,GN) * ( SUM(G, IGT(GN,G) - IGT(G,GN) ) - SUM(H, TP(H,GN) * HN(H) * TPC(H,GN) ) - S0(GN) + Y(GN) ); * 7.03 ENDOGENOUS GOVERNMENT FACTOR RENTALS GFNEQ(F,GN).. FD(F,GN) * R(F,GN) * RA(F) =E= AG(F,GN) * ( SUM(G, IGT(GN,G) - IGT(G,GN) ) - SUM(H, TP(H,GN) * HN(H) * TPC(H,GN) ) - S0(GN) + Y(GN) ); * 7.04 EXOGENOUS GOVERNMENT CONSUMPTION CGXEQ(I,GX).. P(I) * ( 1 + SUM(GS, TAUQX(GS,I) ) + REG6(I) )*(1 + REG5(I) ) * CG(I,GX) =E= P0(I) * ( 1 + SUM(GS, TAUQ(GS,I) ) ) * CG0(I,GX); * 7.05 EXOGENOUS GOVERNMENT FACTOR RENTALS GFXEQ(F,GX).. FD(F,GX) * R(F,GX) * RA(F) =E= FD0(F,GX) * R0(F,GX) * RA0(F); * 7.06 DISTRIBUTION OF TAX REVENUES TO SPENDING DESTINATIONS TDEQ(G,GT)$(IGTD(G,GT) EQ 1).. IGT(G,GT) =E= TAXS(G,GT) * Y(GT); * 7.07 DISTRIBUTION FROM SOURCES OF TRANSFER PAYMENTS TPGTEQ(GW,G1)$(IGTD(GW,G1) EQ 4).. IGT(GW,G1) =E= IGT0(GW,G1) + SUM(H, HN(H) * TP(H,GW) * TPC(H,GW) ) - SUM(H, HN0(H) * TP0(H,GW) * TPC(H,GW) ); * 7.08 BALANCE OF GENERAL FUND SPREAD EVENLY AMONGST GENERAL FUND UNITS GFBALEQ(GC).. IGT(GC,'CGENF') =E= ( Y('CGENF') + SUM(G, IGT('CGENF',G) ) - SUM(GL, IGT(GL,'CGENF') ) - S0('CGENF') ) * SAM(GC,'CGENF') / SUM(GC1, SAM(GC1,'CGENF') ); * 7.09 GOVERNMENT SAVINGS GSEQ(G).. S(G) =E= Y(G) + SUM(G1, IGT(G,G1) - IGT(G1,G) ) - SUM(H, TP(H,G) * HN(H) * TPC(H,G) ) - SUM(I, CG(I,G) * P(I) * ( 1 + SUM(GS, TAUQX(GS,I) ) + REG6(I) )*(1 + REG5(I) ) ) - SUM(F, FD(F,G) * R(F,G) * RA(F) * ( 1 + SUM(GF, TAUFX(GF,F,G) ) ) ); * 7.10 PROPOSITION 98 TRANSFER FOR EDUCATION -- TEST 2 * PROP98.. IGT('LSK14','CGENF') * =E= IGT0('LSK14','CGENF') * ADA * * ( SUM(H, Y(H) + SUM(G, TP(H,G) * HN(H) * TPC(H,G) ) ) / SUM(H, HH(H) ) ) * / ( SUM(H, Y0(H) + SUM(G, TP0(H,G) * HN0(H) * TPC(H,G) ) ) / SUM(H, HH0(H) ) ); * 7.11 PROPOSITION 98 TRANSFER FOR EDUCATION -- TEST 3 PROP98.. IGT('LSK14','CGENF') =E= IGT0('LSK14','CGENF') * ADA * ( ( Y('CGENF') + SUM(G, IGT('CGENF',G) ) ) / SUM(H, HH(H) ) ) / ( ( Y0('CGENF') + SUM(G, IGT0('CGENF',G) ) ) / SUM(H, HH0(H) ) ); * 7.12 PUBLIC EDUCATION SPENDING GSEDEQ.. GSED =E= SUM(GED, SUM(G, IGT(GED,G) ) ); *---------------------------------------------------------------- * 6.2.8 MODEL CLOSURE *---------------------------------------------------------------- * 8.01 ARTIFICIAL OBJECTIVE FUNCTION -- TOTAL STATE PERSONAL INCOMES SPIEQ.. SPI =E= SUM(H, ( Y(H) + SUM(G, TP(H,G) * HN(H) * TPC(H,G) ) ) / CPI(H) ); * 8.02 LABOR MARKET EQUILIBRIUM LMEQ.. SUM(H, HW(H) ) =E= SUM(Z, FD('LABOR',Z) ) * JOBCOR; * 8.03 CAPITAL MARKETS EQUILIBRIUM KMEQ(I).. KS(I) =E= FD('CAPIT',I); * 8.04 GOODS AND SERVICES MARKETS EQUILIBRIUM GMEQ(I).. DS(I) =E= DD(I) + CX(I) - M(I); * 8.05 DOMESTIC DEMAND DEFINITION DDEQ(I).. DD(I) =E= V(I) + CH(I) + SUM(G, CG(I,G) ) + CN(I); *---------------------------------------------------------------- * 6.2.9 MODEL CLOSURE USING FIXED VALUES (COMPUTATIONALLY MORE EFFICIENT THAN EQUATIONS) *---------------------------------------------------------------- * 9.01 FIX PIT FOR NON INCOME TAX UNITS TO ZERO PIT.FX(G,H)$(NOT GI(G)) = 0; * 9.02 FIX INTER GOVERNMENTAL TRANSFERS TO ZERO IF NOT IN ORIGINAL SAM IGT.FX(G,G1)$(NOT IGTD(G,G1)) = 0; * 9.03 FIX EXOGENOUS INTERGOVERNMENTAL TRANSFERS IGT.FX(G,G1)$(IGTD(G,G1) EQ 2) = IGT0(G,G1); * 9.04 FIX GOVERNMENT DEMAND FOR GOODS AND SERVICES TO ZERO IF NOT IN ORIGINAL DATA CG.FX(I,G)$(NOT SAM(I,G) ) = 0; * 9.05 FIX GOVERNMENT DEMAND FOR FACTORS TO ZERO IF NOT IN ORIGINAL DATA FD.FX(F,G)$(NOT SAM(F,G) ) = 0; * 9.06 FIX INTER SECTORAL WAGE DIFFERENTIALS R.FX('LABOR',Z) = R0('LABOR',Z); * 9.07 FIX GOVERNMENT RENTAL RATE FOR CAPITAL TO INITIAL LEVEL R.FX('CAPIT',G) = R0('CAPIT',G); * 9.08 FIX ECONOMY WIDE SCALAR FOR CAPITAL RA.FX('CAPIT') = RA0('CAPIT'); * 9.09 FIX EXOGENOUS TRANSFER PAYMENT LEVELS TP.FX(H,GW) = TP0(H,GW); * 9.10 FIX TRANSFER PAYMENTS TO ZERO IF NOT IN ORIGINAL DATA TP.FX(H,G)$(NOT TP0(H,G)) = 0; *---------------------------------------------------------------- * 6.2.10 POLLUTION *---------------------------------------------------------------- * 10.1 POLLUTION FROM INDUSTRIAL SOURCES DIRTIEQ(I,PE).. DIRTI(I,PE) =E= DS(I)*PII0(I,PE); * 10.2 POLLUTION FROM HOUSEHOLDS DIRTHHEQ(PE).. DIRTHH(PE) =E= SUM(H,HH(H))*PIHH0(PE); *---------------------------------------------------------------- * 7. SOLVE AND OUTPUT PREPARATION *---------------------------------------------------------------- * 7.1 MODEL FORMULATION *---------------------------------------------------------------- MODEL edram999 /ALL/; *---------------------------------------------------------------- * 7.2 TAX EXPERIMENT LOOP *---------------------------------------------------------------- * BASE SOLVE: REPLICATION OF CURRENT ECONOMY SOLVE edram999 MINIMIZING SPI USING NLP; * SAVE SOLUTION VALUES FOR BASE SOLUTION (SHOULD MATCH INITIAL DATA) R1('BAC','TODAY') = Y.L('CTBAC'); R1('PIT','TODAY') = Y.L('CTPIT'); R1('SAU','TODAY') = Y.L('CTSAU'); R1('GFREV','TODAY') = Y.L('CGENF') + SUM(G, IGT.L('CGENF',G) ); R1('SFREV','TODAY') = SUM(GSF, Y.L(GSF) - IGT.L('CGENF',GSF) ); R1('STATIC','TODAY') = 0; R1('DGF','TODAY') = R1('GFREV','TODAY') - R1('GFREV','BASE'); R1('DSF','TODAY') = R1('SFREV','TODAY') - R1('SFREV','BASE'); R1('DDRE','TODAY') = R1('DGF','TODAY') + R1('DSF','TODAY') - R1('STATIC','TODAY'); R1('PDRE','TODAY')$R1('STATIC','TODAY') = R1('DDRE','TODAY') / R1('STATIC','TODAY') * 100; R1('SPI','TODAY') = SPI.L; R1('D1SPI','TODAY') = SPI.L - R1('SPI','BASE'); R1('D2SPI','TODAY') = (SPI.L - R1('SPI','BASE'))/R1('SPI','BASE'); R1('OUT','TODAY') = SUM(I,DS.L(I)); R1('D1OUT','TODAY') = SUM(I,DS.L(I)) - R1('OUT','BASE'); R1('D2OUT','BASE') = (SUM(I,DS.L(I)) - R1('OUT','BASE'))/R1('OUT','BASE'); R1('CPI','TODAY') = SUM(H, CPI.L(H)*HH.L(H)/SUM(H1, HH.L(H1))); R1('D1CPI','TODAY') = SUM(H, CPI.L(H)*HH.L(H)/SUM(H1, HH.L(H1))) - R1('CPI','BASE'); R1('D2CPI','TODAY') = (SUM(H, CPI.L(H)*HH.L(H)/SUM(H1, HH.L(H1))) - R1('CPI','BASE'))/R1('CPI','BASE'); R1('GN','TODAY') = SUM(I, N.L(I) ); R1('D1GN','TODAY') = SUM(I, N.L(I) ) - R1('GN','BASE'); R1('D2GN','TODAY') = (SUM(I, N.L(I) ) - R1('GN','BASE'))/R1('GN','BASE'); R1('POP','TODAY') = SUM(H, HH.L(H) ); R1('D1POP','TODAY') = SUM(H, HH.L(H) ) - R1('POP','BASE'); R1('D2POP','TODAY') = (SUM(H, HH.L(H) ) - R1('POP','BASE'))/R1('POP','BASE'); R1('W','TODAY') = RA.L('LABOR') / RA0('LABOR') * 100; R1('D1W','TODAY') = RA.L('LABOR') / RA0('LABOR') * 100 - R1('W','BASE'); R1('D2W','TODAY') = (RA.L('LABOR') / RA0('LABOR') * 100 - R1('W','BASE'))/R1('W','BASE'); R1('DEPR','TODAY') = DEPR; R1('R','TODAY') = SUM(I, R.L('CAPIT',I) * KS.L(I) ) / SUM(I, R0('CAPIT',I) * KS.L(I) ) * 100; R1('D1R','TODAY') = SUM(I, R.L('CAPIT',I) * KS.L(I) ) / SUM(I, R0('CAPIT',I) * KS.L(I) ) * 100 - R1('R','BASE'); R1('D2R','TODAY') = (SUM(I, R.L('CAPIT',I) * KS.L(I) ) / SUM(I, R0('CAPIT',I) * KS.L(I) ) * 100 - R1('R','BASE'))/R1('R','BASE'); R1('LD','TODAY') = SUM(Z, FD.L('LABOR',Z) ); R1('D1LD','TODAY') = SUM(Z, FD.L('LABOR',Z) ) - R1('LD','BASE'); R1('D2LD','TODAY') = (SUM(Z, FD.L('LABOR',Z) ) - R1('LD','BASE'))/R1('LD','BASE'); R1('KD','TODAY') = SUM(Z, FD.L('CAPIT',Z) ); R1('D1KD','TODAY') = SUM(Z, FD.L('CAPIT',Z) ) - R1('KD','BASE'); R1('D2KD','TODAY') = (SUM(Z, FD.L('CAPIT',Z) ) - R1('KD','BASE'))/R1('KD','BASE'); R1('GFSAV','TODAY') = S.L('CGENF'); R1('D1GFSAV','TODAY')= S.L('CGENF') - R1('GFSAV','BASE'); R1('D2GFSAV','TODAY')= (S.L('CGENF') - R1('GFSAV','BASE'))/R1('GFSAV','BASE'); R1('MIC','TODAY') = SUM(I, ITC.L(I) ); R1('PROP98','TODAY') = IGT.L('LSK14','CGENF'); R2('M-STAT','TODAY') = edram999.MODELSTAT; R2('S-STAT','TODAY') = edram999.SOLVESTAT; R3('IGT',G,'TODAY') = IGT.L(G,'CGENF'); R3('GOVS',G,'TODAY') = S.L(G); R3('Y',H,'TODAY') = Y.L(H); R3('Y',G,'TODAY') = Y.L(G); R4('INTERMED',I,'TODAY') = SUM(J,REG1(J,I))/30 - 1; R4('DS',I,'TODAY') = DS.L(I); R4('FDL',I,'TODAY') = FD.L('LABOR',I); R4('P',I,'TODAY') = P.L(I); R4('PD',I,'TODAY') = PD.L(I); R4('D1DS',I,'TODAY') = DS.L(I) - R4('DS',I,'BASE'); R4('D2DS',I,'TODAY') = (DS.L(I) - R4('DS',I,'BASE'))/R4('DS',I,'BASE'); R4('D1FDL',I,'TODAY') = FD.L('LABOR',I) - R4('FDL',I,'BASE'); R4('D2FDL',I,'TODAY') = (FD.L('LABOR',I) - R4('FDL',I,'BASE'))/R4('FDL',I,'BASE'); R4('FDK',I,'TODAY') = FD.L('CAPIT',I); R4('D1FDK',I,'TODAY') = FD.L('CAPIT',I) - R4('FDK',I,'BASE'); R4('D2FDK',I,'TODAY') = (FD.L('CAPIT',I) - R4('FDK',I,'BASE'))/R4('FDK',I,'BASE'); R4('PVA',I,'TODAY') = PVA.L(I); R4('D1PVA',I,'TODAY') = PVA.L(I) - R4('PVA',I,'BASE'); R4('D2PVA',I,'TODAY') = (PVA.L(I) - R4('PVA',I,'BASE'))/R4('PVA',I,'BASE'); R4('D1P',I,'TODAY') = P.L(I) - R4('P',I,'BASE'); R4('D2P',I,'TODAY') = (P.L(I) - R4('P',I,'BASE'))/R4('P',I,'BASE'); R4('M',I,'TODAY') = M.L(I); R4('D1M',I,'TODAY') = M.L(I) - R4('M',I,'BASE'); R4('D2M',I,'TODAY') = (M.L(I) - R4('M',I,'BASE'))/R4('M',I,'BASE'); R4('X',I,'TODAY') = CX.L(I); R4('D1X',I,'TODAY') = CX.L(I) - R4('X',I,'BASE'); R4('D2X',I,'TODAY') = (CX.L(I) - R4('X',I,'BASE'))/R4('X',I,'BASE'); R4('RRK',I,'TODAY') = R.L('CAPIT',I) * KS.L(I) / R0('CAPIT',I) * KS.L(I) * 100; R4('RRL',I,'TODAY') = R.L('LABOR',I) / R0('LABOR',I) * 100; R4('D1RRL',I,'TODAY') = R.L('LABOR',I) / R0('LABOR',I) * 100 - R4('RRL',I,'BASE'); R4('D2RRL',I,'TODAY') = (R.L('LABOR',I) / R0('LABOR',I) * 100 - R4('RRL',I,'BASE'))/R4('RRL',I,'BASE'); R4('D1RRK',I,'TODAY') = R.L('CAPIT',I) * KS.L(I) / R0('CAPIT',I) * KS.L(I) * 100 - R4('RRK',I,'BASE'); R4('D2RRK',I,'TODAY') =(R.L('CAPIT',I) * KS.L(I) / R0('CAPIT',I) * KS.L(I) * 100 - R4('RRK',I,'BASE'))/R4('RRK',I,'BASE'); R5('PII0',I,PE,'TODAY') = PII0(I,PE); R5('DIRTI',I,PE,'TODAY') = DIRTI.L(I,PE); R6('YD',H,'TODAY') = YD.L(H)/HH.L(H); R6('Y',H,'TODAY') = Y.L(H)/HH.L(H); R6('YDR',H,'TODAY') = YD.L(H)/HH.L(H)/CPI.L(H); R6('YR',H,'TODAY') = Y.L(H)/HH.L(H)/CPI.L(H); R6('CPIH',H,'TODAY') = CPI.L(H); R6('D1YD',H,'TODAY') = YD.L(H)/HH.L(H) - R6('YD',H,'BASE'); R6('D2YD',H,'TODAY') = (YD.L(H)/HH.L(H) - R6('YD',H,'BASE'))/R6('YD',H,'BASE'); R6('D1Y',H,'TODAY') = Y.L(H)/HH.L(H) - R6('Y',H,'BASE'); R6('D2Y',H,'TODAY') = (Y.L(H)/HH.L(H) - R6('Y',H,'BASE'))/R6('Y',H,'BASE'); R6('D1YDR',H,'TODAY') = YD.L(H)/HH.L(H)/CPI.L(H) - R6('YDR',H,'BASE'); R6('D2YDR',H,'TODAY') = (YD.L(H)/HH.L(H)/CPI.L(H) - R6('YDR',H,'BASE'))/R6('YDR',H,'BASE'); R6('D1YR',H,'TODAY') = Y.L(H)/HH.L(H)/CPI.L(H) - R6('YR',H,'BASE'); R6('D2YR',H,'TODAY') = (Y.L(H)/HH.L(H)/CPI.L(H) - R6('YR',H,'BASE'))/R6('YR',H,'BASE'); R6('D1CPIH',H,'TODAY') = CPI.L(H) - R6('CPIH',H,'BASE'); R6('D1CPIH',H,'TODAY') = (CPI.L(H) - R6('CPIH',H,'BASE'))/R6('CPIH',H,'BASE'); R7('POLN',PE,'TODAY') = SUM(I, DIRTI.L(I,PE)); R7('D1POLN',PE,'TODAY') = SUM(I, DIRTI.L(I,PE)) - R7('POLN',PE,'BASE'); R7('D2POLN',PE,'TODAY') = (SUM(I, DIRTI.L(I,PE)) - R7('POLN',PE,'BASE'))/R7('POLN',PE,'BASE'); *---------------------------------------------------------------- * 7.3 PUT RESULTS INTO OUTPUT FILE *---------------------------------------------------------------- PUT 'edram999 '; LOOP(T, PUT T.TL''); PUT /; PUT 'MODEL '; LOOP(T$(ORD(T) GT 1), LOOP(MS$(R2('M-STAT',T) EQ ORD(MS) ), PUT MS.TE(MS) ) ); PUT /; PUT 'SOLVER '; LOOP(T$(ORD(T) GT 1), LOOP(SS$(R2('S-STAT',T) EQ ORD(SS) ), PUT SS.TE(SS) ) ); PUT /; LOOP(R1H, PUT R1H.TE(R1H)' '; LOOP(T, PUT R1(R1H,T) ); PUT / ); LOOP(PE, PUT PE.TL; PUT/ LOOP(R7H, PUT R7H.TE(R7H)' '; LOOP(T, PUT R7(R7H,PE,T) ); PUT / )); LOOP(H, PUT H.TL; PUT/ LOOP(R6H, PUT R6H.TE(R6H)' '; LOOP(T, PUT R6(R6H,H,T) ); PUT / )); LOOP(I, PUT I.TL; PUT /; LOOP(R4H, PUT R4H.TE(R4H)' '; LOOP(T, PUT R4(R4H,I,T)) PUT /); LOOP((R5H,PE), PUT R5H.TE(R5H), PE.TL; LOOP(T, PUT R5(R5H,I,PE,T) ); PUT / ));