Tuesday, June 23, 2015

How to make an IO table so that GEMPACK can read?

Data for GEMPACK models (for example, input-output tables or parameters such as elasticities) are normally stored on files called Header Array (or HAR) files. So, Lets make an Input Output Table as a Header Array (HAR) extension file.

Lets assume in a closed economy there are two industry ${{I}_{1}}$ and ${{I}_{2}}$. Say ${{I}_{1}}$ produces commodity ${{S}_{1}}$ and ${{I}_{2}}$ produces commodity ${{S}_{2}}$. To produce, they need the factors of production ($FOP$) say Labor $L$ and capital $K$. These  $FOP$ are supplied by the household ($HH$), let me index household by ${{I}_{0}}$. We assume that there is no government and all the income of household is spent on the consumption of commodity ${{S}_{1}}$ and ${{I}_{2}}$.

Have a look on the IO table which we are going to make as HAR file.

Here is my video post on How to make a HAR file?

In the next blog post, I will discuss on writing the first CGE programming codes, then I will show how to run a first CGE with the labor shock in an economy.

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