GAMS-based trade modeling: an introduction

This is an applied course. The structure emphasizes practical computer applications, with just enough lectures to make sense of the lab exercises. Slides and readings are listed below. You will also receive a course disk. The course disk itself contains the following directories.

index.htm: this file.
docs: a directory with readings.
course_models: a directory containing the applications for this course
SAMs data: some files for discussion of social accounting matrices
more_models: models not covedred in class, but potentially useful
installs: GAMS, license files, and related utilities. IF you are using an ENGLISH version of Windows, then the files can be installed using:
- install.bat (for the C drive) and installD.bat (for your D drive). If you DO NOT have an English version of Windows (if it a German version, of Spanish, or Chinese, or Russian, or Dutch, or whatever...) then you should install GAMS directly using "\installs\Setup.exe" , and then copy everything from "\installs\to copy to GAMS directory if you used setup.exe directly" into your GAMS directory.
- the installs directory includes a temporary GAMS license for the course.

POWERPOINT slides:
- Slides part 1
- Slides part 2
- Slides part 3

I. GAMS Basics [readings: 14, 6, 7]

- Basic syntax
- Data management (GDX, XLS files)
- Some single market, trade and econometric examples

II. Single Country CGE models [readings: 2, 12, 12(up to section 4)]

- The 123 model: A simple single-country model
- SAMs and multi-sector single-country models
- MCP programming
- GE models as MCP problems
- Working with MPSGE

III. Multi-region modeling [readings 9, 1, 10, 15]

- The GTAP database
- GTAP data utilities
- MPSGE-based multi-region CGE modeling

IV. Extensions [readings 5, 15, 16, 17 12 (remainder)]

- Market structure
- Quantitative Restrictions
- Investment dynamics

Readings

[1] Brockmeier, M. (2001), "A Graphical Exposition of the GTAP Model," GTAP Technical Paper no 8, Center for Global Trade Analysis: Purdue University.

[2] Devarajan, S., D.S. Go, J.D. Lewis, S. Robinson, and P. Sinko (1997), "Simple General Equilibrium Modeling," in J. Francois and K. Reinert, editors, Applied Methods for Trade Policy Analysis: A Handbook, Cambridge University Press: Cambridge.

[3] Finger, M. (1981), "Policy Research," Journal of Political Economy 89(6): 1270-1272. (This is not related to CGE modeling per se, but is a nice short, non-technical discussion of the conflict between policy analysis and policy making.)

[4] Francois, J.F. and H.K. Hall (1997), 'Partial Equilibrium Modeling,' in J. Francois and K.A. Reinert, eds. Applied Methods for Trade Policy Analysis: A
Handbook, Cambridge University Press: Cambridge.

[5] Francois, J.F. and D. Roland-Holst (1997), "Scale Economies and Imperfect Competition,"in J. Francois and K. Reinert, editors, Applied Methods for Trade Policy Analysis: A Handbook, Cambridge University Press: Cambridge.

[6] GAMS Corporation (2004), "GAMS GDX Utilities and Tools," The GAMS Corporation: Washington.

[7] GAMS Corporation (2003), "GAMS IDE Documentation," The GAMS Corporation: Washington.

[8] Harrison, J., J.M. Horridge and K.R. Pearson (2000), "Decomposing Simulation Results With Respect to Exogenous Shocks," Computational Economics 15: 227-249.

[9] Hertel, T.W., E. Ianchovichina, and B.J. McDonald (1997) "Multi-Region General Equilibrium Modeling," in J. Francois and K. Reinert, editors, Applied Methods for Trade Policy Analysis: A Handbook, Cambridge University Press: Cambridge.

[10] Huff, K., R. McDougal, R. and T. Walmsley (2000), "Contibuting Papers to the GTAP Database," GTAP Technical Paper no 1, Center for Global Trade Analysis: Purdue University.

[11] Lau, Morten I. , Andreas Pahlke & Thomas F. Rutherford (2000), "Approximating Infinite-Horizon Models in a Complementarity Format:
A Primer in Dynamic General Equilibrium Analysis," mimeo, University of Colorado.

[12] Paltsev, S. (2000), "Moving from Static to Dynamic General Equilibrium Economic Models (Notes for a beginner in MPSGE)," University of Colorado: Boulder.

[13] Reinert, K. and D. Roland-Holst (1997), "Social Acccounting Matrices," in J. Francois and K. Reinert, editors, Applied Methods for Trade Policy Analysis: A Handbook, Cambridge University Press: Cambridge.

[14] Rosenthal, R.E. (2002), "A GAMS Tutorial," Navy Postgraduate School, Monterey California.

[15] Rutherford, Thomas F. (2005), "GTAP6inGAMS: The Dataset and Static Model," An Arbor, Michigan.