Moving from Static to Dynamic General Equilibrium Economic Models (Notes for a beginner in MPSGE)

Joint Program Technical Note
Moving from Static to Dynamic General Equilibrium Economic Models (Notes for a beginner in MPSGE)
Paltsev, S. (2004)
Joint Program Technical Note, 49 pgs

Note #4 [Download]

Abstract/Summary:

The document is intended to serve as a guide for beginners in MPSGE (Mathematical Programming System for General Equilibrium Analysis). It starts with a short introduction to the class of economic problems which can be solved with MPSGE, followed by a detailed description of step-by-step transformation of a simple static general equilibrium model into a dynamic Ramsey model. The model is based on a simplified dataset. Two cases are considered: the first dataset represents an economy on the steady-state growth path and the second dataset is of the steady-state growth path in a base year. The paper includes GAMS-MPSGE codes which can be copied and used as a starting point for further exploration of dynamic economic modeling.

Citation:

Paltsev, S. (2004): Moving from Static to Dynamic General Equilibrium Economic Models (Notes for a beginner in MPSGE). Joint Program Technical Note TN #4, 49 pgs (http://globalchange.mit.edu/publication/14238)
  • Joint Program Technical Note
Moving from Static to Dynamic General Equilibrium Economic Models (Notes for a beginner in MPSGE)

Paltsev, S.

49 pgs
2004

Abstract/Summary: 

The document is intended to serve as a guide for beginners in MPSGE (Mathematical Programming System for General Equilibrium Analysis). It starts with a short introduction to the class of economic problems which can be solved with MPSGE, followed by a detailed description of step-by-step transformation of a simple static general equilibrium model into a dynamic Ramsey model. The model is based on a simplified dataset. Two cases are considered: the first dataset represents an economy on the steady-state growth path and the second dataset is of the steady-state growth path in a base year. The paper includes GAMS-MPSGE codes which can be copied and used as a starting point for further exploration of dynamic economic modeling.