GTAP Resources: Frequently Asked Question Details
| Subject: |
FAQ
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| Question: |
I want to extract the calibrated parameters that allow GTAP to match modeled trade flows to the observable data. In other words, I'm looking for the parameters that define one country's "taste" for another country's goods. Is this data readily available from GTAP, or must it be backed out from other information? If so, how might I do that?
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| Answer: |
Good question. The answer is that these parameters are imbedded in the import shares. One "advantage" of using the linearized representation of the non-linear model is that the user does not need to go through the "calibration" stage in which these preference parameters are extracted, given information about prices and the elasticity of substitution. They are not needed to solve the model in its linearized form because their economic content is already embodied in the shares.You will have to perform this calculation on the side to obtain them. |
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| Date Added: |
3/22/2001
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Updated: Batta, G. (4/23/2024)
