Functional Forms and Parametrization of Cge Models

PEP Working Paper No. 2006-04

44 Pages Posted: 27 Apr 2006 Last revised: 11 Jul 2018

See all articles by Nabil Annabi

Nabil Annabi

Université Laval - Département d'Économique

John Cockburn

Partnership for Economic Policy (PEP); Université Laval; Partnership for Economic Policy (PEP)

Bernard Decaluwe

Université Laval - Département d'Économique

Date Written: March 1, 2006

Abstract

This study focused on the choice of functional forms and their parametrization (estimation of free parameters and calibration of other parameters) in the context of CGE models. Various types of elasticities are defined, followed by a presentation of the functional forms most commonly used in these models and various econometric methods for estimating their free parameters. Following this presentation of the theoretical framework, we review parameter estimates used in the literature. This brief literature review was carried out to be used as a guideline for the choice of parameters for CGE models of developing countries.

Keywords: Trade liberalization, Poverty, elasticities, functional forms, calibration, Computable General Equilibrium (CGE) model

JEL Classification: C51, C81, C82, D58, E27

Suggested Citation

Annabi, Nabil and Cockburn, John and Decaluwe, Bernard, Functional Forms and Parametrization of Cge Models (March 1, 2006). PEP Working Paper No. 2006-04. Available at SSRN: https://ssrn.com/abstract=897758 or http://dx.doi.org/10.2139/ssrn.897758

Nabil Annabi

Université Laval - Département d'Économique ( email )

Quebec
Canada

John Cockburn (Contact Author)

Partnership for Economic Policy (PEP) ( email )

P.O. Box 30772-00100
ICIPE - Duduville Campus, Kasarani
Nairobi
Kenya

Université Laval ( email )

Dept. of Economics
Québec, Quebec G1V 0A6
Canada

Partnership for Economic Policy (PEP) ( email )

Duduville Campus, Kasarani
P.O. Box 30772-00100
Nairobi
Kenya

Bernard Decaluwe

Université Laval - Département d'Économique ( email )

2325 Rue de l'Université
Ste-Foy, Quebec G1K 7P4 G1K 7P4
Canada
418-656-5561 (Phone)
418-656-7798 (Fax)

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