Revised Armington Elasticities of Substitution USITC Model and the Concordance for Constructing Consistent Set for the GTAP Model
USITC Office of Economics Research Note No. 20001-A
46 Pages Posted: 15 Mar 2007
Date Written: 2004
The paper presents a set of Armington substitution elasticities, and the concordances between different models and their aggregates, which are required to generate a consistent set of elasticities between the Commission's United States CGE model, USITC model, and the Global Trade Analysis Project CGE model, "GTAP model". These CGE models differ in the scope and level of commodity detail. Because of these differences generating a consistent set of Armington elasticities for an necessitates defining USITC model aggregate commodities that map to the more aggregate GTAP model commodities. The example provided here illustrates a 128-commodity U.S. single-country model mapping to a 41-commodity global model. The two characterizations of the U.S. economy are based upon the sectors as defined in the Bureau of Economic Analysis (BEA) 1992 Input-Output (I-O) accounts. Tables provide the concordances between the USITC-128 commodities and the GTAP-41 commodities and the BEA I-O accounts. In addition, the Armington elasticity is presented for each of the BEA I-O accounts.
Keywords: U.S. Armington elasticities of substitution, GTAP
JEL Classification: D58, F12
Suggested Citation: Suggested Citation