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3 - The CGE Model Database

Published online by Cambridge University Press:  11 December 2020

Mary E. Burfisher
Affiliation:
Purdue University, Indiana
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Summary

In this chapter, we describe the two components of the database of a computable general equilibrium (CGE) model. The first is the Social Accounting Matrix (SAM). The SAM database reports the value of all transactions in an economy during a period of time. The data are organized in a logical framework that provides a visual display of the transactions as a circular flow of national income and spending. The SAM’s microeconomic data describe transactions made by each agent in a region’s economy. When aggregated, the SAM’s micro data describe the region’s macro economy. The SAM’s micro data can be used to calculate descriptive statistics on an economy’s structure. We describe three extensions to a SAM: non-diagonal make matrices, domestic trade margins, and multi-region input-output tables. A CGE model database also includes elasticity parameters that describe the responsiveness of producers and consumers to changes in income and relative prices. The role of these parameters in driving model results can be evaluated in a sensitivity analysis.

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Publisher: Cambridge University Press
Print publication year: 2021

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  • The CGE Model Database
  • Mary E. Burfisher, Purdue University, Indiana
  • Book: Introduction to Computable General Equilibrium Models
  • Online publication: 11 December 2020
  • Chapter DOI: https://doi.org/10.1017/9781108780063.004
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  • The CGE Model Database
  • Mary E. Burfisher, Purdue University, Indiana
  • Book: Introduction to Computable General Equilibrium Models
  • Online publication: 11 December 2020
  • Chapter DOI: https://doi.org/10.1017/9781108780063.004
Available formats
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Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • The CGE Model Database
  • Mary E. Burfisher, Purdue University, Indiana
  • Book: Introduction to Computable General Equilibrium Models
  • Online publication: 11 December 2020
  • Chapter DOI: https://doi.org/10.1017/9781108780063.004
Available formats
×