Resource Center

Advanced Search
Technical Papers
Working Papers
Research Memoranda
GTAP-L Mailing List
CGE Books/Articles
Important References
Submit New Resource

GTAP Resources: Resource Display

GTAP Resource #2507

"Mending the Family Tree: A Reconciliation of the Linearization and Levels Schools of CGE Modelling"
by Hertel, Thomas, Mark Horridge and Ken Pearson

A revised version of this paper was published in
Economic Modelling, Vol. 9 (1992), pp. 385-407 .


This paper offers a critical comparison between the North American levels school of applied general equilibrium modelling and the Norwegian/Australian school of linearizers. The paper develops both the levels and linearized representations of a neoclassical, multiregion trade model. This development is used to focus attention on similarities and differences between the two schools. The main conclusions are as follows.
* The method used to solve applied general equilibrium models is not really the issue - the solution method used has become short-hand for a host of cultural differences reflecting the orientation of the two groups.
* Levels or linearized versions of models are equally valid representations. Either representation is a natural starting point for obtaining accurate solutions of the model.
* Linearized versions ofter aid transparency in explaining the mechanisms at work in a model.
* In view of recent developments with the GEMPACK software suite, it is no longer necessary for linearizers to settle for solutions containing linearization errors.
* The two schools have a great deal in common and both would benefit from greater cooperation.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: Imct Project, Melbourne University, Preliminary Working Paper No. IP-54
Date: 1995
Version: June 1991
Created: Pearson, K. (8/28/2007)
Updated: Batta, G. (8/29/2007)
Visits: 2,650
- Software and modeling tools
- Calibration and parameter estimation

If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.

Public Access
  File format GTAP Resource 2507  (1.8 MB)   Replicated: 0 time(s)

Restricted Access
No documents have been attached.

Special Instructions
No instructions have been specified.

Comments (0 posted)
You must log in before entering comments.

No comments have been posted.