Model Exercise 11, "US-Japan PTA/Deep Integration," in Burfisher, Intro to CGE Models, 3e (2021)
March 2021

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Version: NUSJToy
Model: Standard GTAPv7 model (uncondensed)
Data: GTAP Data Base version 10 (2014) 
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I.   SUMMARY

This GTAP model version uses a 3-region, 3-activity, 3-commodity, 3-factor data aggregation.  It is used for demonstration in Burfisher, Mary E., Introduction to CGE Models, 3e. Cambridge University Press, 2021.

II.   SETS

The 3 regions are:
USA	United States
JPN          Japan
ROW	Rest of the World

The 3 production activities are:
AGR	food and agriculture
MFG	resources and manufactures
SER	all services

The 3 commodities are:
AGR	food and agriculture
MFG	resources and manufactures
SER	all services

The 3 factors are:
Land
Labor
Capital


III.   EXPERIMENT FILES: SHOCKS, CLOSURES AND SOLUTION METHOD

SHOCKS
The experiments in this version:
- Numeraire experiment
- Japan-US PTA, eliminating all bilateral tariffs and export taxes (Tables 8.13 and 8.14 in book)
- Example of Altertax experiment that adds AVEs of technical NTMs as import tariff and export tax surcharges for Model Exercise 11
 
CLOSURES
Standard uncondensed GE closure for GTAPv7 model

SOLUTION METHODS
The preferred solution method for policy analysis is Gragg 2-4-6 -- with automatic accuracy if large shocks are undertaken. 


