GTAP Resources: Resource Display
| GTAP Resource #7274 |
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"GTAP-HET Reloaded: An Integration of Firm Heterogeneity into the GTAP Version 7 Model" by Akgul, Zeynep, Erwin Corong and Alessandro Antimiani Abstract Firm heterogeneity, exemplified by significant diversity within industries, has a profound impact on international trade. As highlighted by Melitz (2003), the concept of firm self-selection introduces the notion that only the most productive firms are able to engage profitably in exports, thereby leading to an increase in aggregate productivity. The integration of this model into Computable General Equilibrium (CGE) models offers valuable insights into the impacts of trade policies and their distributional consequences. While firm heterogeneity has been applied to the classic GTAP Model (GTAPv6.2), it has not yet been implemented in the new standard GTAP model (GTAPv7) (Corong et al., 2017), which is the most up-to-date standard model. In this paper, our objective is to integrate the GTAP Firm Heterogeneity (GTAP-HET) Model (Akgul et al., 2016) into the GTAPv7 model in a flexible way by allowing users to specify sectors with firm heterogeneity specifications, thereby not only enhancing GTAP-HET with the latest features of the standard model but also augmenting its capability to analyze policy impacts comprehensively. Drawing from the methodologies outlined by Akgul et al. (2016) and Dixon et al. (2018), our approach will involve integrating monopolistic competition and endogenous productivity effects. By refining the GTAP-HET model, we aim to provide researchers and policymakers with a cutting-edge tool for incorporating the insights derived from firm heterogeneity. |
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- Model extension/development - Africa (Central) - Asia (East) - North America |
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Public Access  Paper (127.8 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 1:05:45 PM
