Premium
Calibration of Computable General Equilibrium Models from Synthetic Benchmark Equilibrium Data Sets *
Author(s) -
ADAMS PHILIP D.,
HIGGS PETER J.
Publication year - 1990
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1990.tb01712.x
Subject(s) - benchmark (surveying) , computable general equilibrium , calibration , notional amount , set (abstract data type) , data set , general equilibrium theory , computer science , econometrics , synthetic data , economics , mathematics , algorithm , statistics , finance , artificial intelligence , macroeconomics , geography , geodesy , programming language
The most common procedure for estimating the share parameters of a CGE model is to calibrate the model using a particular year‐of‐record benchmark equilibrium data set. In this paper we argue the case for calibration from synthetic benchmark equilibrium data sets which portray the economy in a notional typical year. The development of a synthetic agricultural sector in the benchmark equilibrium data set of the ORANI model of the Australian economy is described Finally a comparison is made of the results from ORANI of an across‐the‐board tariff cut simulation computed with both the synthetic benchmark equilibrium data set and a particular year‐of‐record data set.