Theoretical Structure of Dynamic GTAP

Purdue University GTAP Technical Paper No. 17

Posted: 17 Aug 2012

Date Written: December 15, 2000

Abstract

This paper documents the foreign asset ownership and investmen theory of the dynamic GTAP model (GTAP-Dyn). The new investment theory offers a disequilibrium approach to modeling endogenously international capital mobility. It permits a recursive solution procedure, a feature that allows easy implementation of dynamics into any static AGE model without imposing limitations on the model's size. The method involves treating time as a variable, not an index. Having time as a variable allows the construction of dynamic GTAP with minimum modification to the existing structure of GTAP, by separating the theory of static GTAP from the length of run.

Keywords: Dynamics, asset onwership, international capital mobility, investment, adaptive expectations

JEL Classification: D58

Suggested Citation

Ianchovichina, Elena and McDougall, Robert, Theoretical Structure of Dynamic GTAP (December 15, 2000). Purdue University GTAP Technical Paper No. 17. Available at SSRN: https://ssrn.com/abstract=2130884

Elena Ianchovichina (Contact Author)

World Bank ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-458-8910 (Phone)
202-522-1159 (Fax)

Robert McDougall

Independent ( email )

No Address Available

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