"""
A Recursive-Dynamic Standard CGE Model (DYNCGE)
This model is featured in the following book.
Hosoe, N., Gasawa, K., Hashimoto, H. Textbook of Computable General
Equilibrium Modeling: Programming and Simulations, 2nd Edition,
University of Tokyo Press. (in Japanese)
Keywords: nonlinear programming, general equilibrium model, social accounting
matrix
"""
from __future__ import annotations
import os
import numpy as np
from gamspy import Alias
from gamspy import Container
from gamspy import Equation
from gamspy import Model
from gamspy import Ord
from gamspy import Parameter
from gamspy import Problem
from gamspy import Product
from gamspy import Sense
from gamspy import Set
from gamspy import Sum
from gamspy import Variable
def main():
m = Container(
system_directory=os.getenv("SYSTEM_DIRECTORY", None),
delayed_execution=int(os.getenv("DELAYED_EXECUTION", False)),
)
# ===============================================================
# Definition of sets for suffix ---------------------------------
# ===============================================================
# Sets
u = Set(
m,
name="u",
records=[
"AGR",
"LMN",
"HMN",
"SRV",
"CAP",
"LAB",
"HOH",
"GOV",
"INV",
"EXT",
"IDT",
"TRF",
],
description="SAM entry",
)
i = Set(
m,
name="i",
domain=u,
records=["AGR", "LMN", "HMN", "SRV"],
description="goods",
)
h = Set(
m, name="h", domain=u, records=["CAP", "LAB"], description="factor"
)
h_mob = Set(
m, name="h_mob", domain=h, records=["LAB"], description="mobile factor"
)
t = Set(
m, name="t", records=[str(i) for i in range(31)], description="time"
)
# Alias
v = Alias(m, name="v", alias_with=u)
j = Alias(m, name="j", alias_with=i)
k = Alias(m, name="k", alias_with=h)
# ===============================================================
# Data for Dynamics ---------------------------------------------
# ===============================================================
# Scalar
ror = Parameter(m, name="ror", description="rate of return of capital")
dep = Parameter(m, name="dep", description="depreciation rate")
pop = Parameter(m, name="pop", description="population growth rate")
zeta = Parameter(
m,
name="zeta",
description="elasticity parameter for investment allocation",
)
ror[...] = 0.05
dep[...] = 0.04
pop[...] = 0.02
zeta[...] = 1
sam_data = np.array([
[
1643.017,
7560.896,
237.841,
1409.202,
0,
0,
3563.257,
0,
919.745,
62.464,
0,
0,
],
[
1485.854,
10803.527,
15330.764,
18597.270,
0,
0,
32220.169,
329.469,
802.026,
1196.525,
0,
0,
],
[
1071.954,
4277.721,
113390.269,
48734.424,
0,
0,
27648.678,
4.931,
34979.803,
55083.516,
0,
0,
],
[
2002.380,
11406.260,
50513.476,
177675.714,
0,
0,
234243.865,
90707.177,
79169.426,
17426.156,
0,
0,
],
[
5082.506,
7042.697,
21058.821,
163045.396,
0,
0,
0,
0,
0,
0,
0,
0,
],
[
1435.010,
8942.365,
42510.123,
222732.700,
0,
0,
0,
0,
0,
0,
0,
0,
],
[0, 0, 0, 0, 196229.420, 275620.198, 0, 0, 0, 0, 0, 0],
[0, 0, 0, 0, 0, 0, 52243.041, 0, 0, 0, 34024.445, 4774.091],
[0, 0, 0, 0, 0, 0, 121930.608, 0, 0, -6059.608, 0, 0],
[
2092.569,
23796.669,
30982.559,
10837.256,
0,
0,
0,
0,
0,
0,
0,
0,
],
[433.854, 4068.616, 9418.058, 20103.917, 0, 0, 0, 0, 0, 0, 0, 0],
[149.278, 2866.853, 1749.385, 8.575, 0, 0, 0, 0, 0, 0, 0, 0],
])
# ===============================================================
# SAM Data
# ===============================================================
SAM = Parameter(
m,
name="SAM",
domain=[u, v],
records=sam_data,
description="social accounting matrix for 2005 [bil. JPY]",
)
# Source: compiled by N. Hosoe, based on the I/O table for 2005
SAMGAP = Parameter(
m,
name="SAMGAP",
domain=u,
description="gaps between row sums and column sums",
)
SAMGAP[u] = Sum(v, SAM[u, v] - SAM[v, u])
# print(SAMGAP.records)
# ===============================================================
# Loading the initial values ------------------------------------
# ===============================================================
# Base year values
Y00 = Parameter(m, name="Y00", domain=j, description="composite factor")
F00 = Parameter(m, name="F00", domain=[h, j], description="factor input")
X00 = Parameter(
m, name="X00", domain=[i, j], description="intermediate input"
)
Z00 = Parameter(m, name="Z00", domain=j, description="gross output")
Xp00 = Parameter(
m, name="Xp00", domain=i, description="household consumption"
)
Xg00 = Parameter(
m, name="Xg00", domain=i, description="government consumption"
)
Xv00 = Parameter(m, name="Xv00", domain=i, description="investment demand")
E00 = Parameter(m, name="E00", domain=i, description="exports")
M00 = Parameter(m, name="M00", domain=i, description="imports")
Q00 = Parameter(
m, name="Q00", domain=i, description="Armington's composite good"
)
D00 = Parameter(m, name="D00", domain=i, description="domestic good")
Sp00 = Parameter(m, name="Sp00", description="private savings")
Td00 = Parameter(m, name="Td00", description="direct tax")
Tz00 = Parameter(m, name="Tz00", domain=j, description="production tax")
Tm00 = Parameter(m, name="Tm00", domain=j, description="import tariff")
III00 = Parameter(m, name="III00", description="composite investment")
II00 = Parameter(
m, name="II00", domain=j, description="sectoral investment"
)
KK00 = Parameter(m, name="KK00", domain=j, description="capital stock")
CC00 = Parameter(
m, name="CC00", description="composite consumption or felicity"
)
FF00 = Parameter(m, name="FF00", domain=h, description="factor endowment")
Sf00 = Parameter(
m, name="Sf00", description="foreign savings in US dollars"
)
tauz00 = Parameter(
m, name="tauz00", domain=i, description="production tax rate"
)
taum00 = Parameter(
m, name="taum00", domain=i, description="import tariff rate"
)
# Base run value
Y0 = Parameter(m, name="Y0", domain=[j, t], description="composite factor")
F0 = Parameter(m, name="F0", domain=[h, j, t], description="factor input")
X0 = Parameter(
m, name="X0", domain=[i, j, t], description="intermediate input"
)
Z0 = Parameter(m, name="Z0", domain=[j, t], description="gross output")
Xp0 = Parameter(
m, name="Xp0", domain=[i, t], description="household consumption"
)
Xv0 = Parameter(
m, name="Xv0", domain=[i, t], description="investment demand"
)
E0 = Parameter(m, name="E0", domain=[i, t], description="exports")
M0 = Parameter(m, name="M0", domain=[i, t], description="imports")
Q0 = Parameter(
m, name="Q0", domain=[i, t], description="Armington's composite good"
)
D0 = Parameter(m, name="D0", domain=[i, t], description="domestic good")
Sp0 = Parameter(m, name="Sp0", domain=t, description="private savings")
Td0 = Parameter(m, name="Td0", domain=t, description="direct tax")
Tz0 = Parameter(m, name="Tz0", domain=[j, t], description="production tax")
Tm0 = Parameter(m, name="Tm0", domain=[j, t], description="import tariff")
III0 = Parameter(
m, name="III0", domain=t, description="composite investment"
)
II0 = Parameter(
m, name="II0", domain=[j, t], description="sectoral investment"
)
KK0 = Parameter(m, name="KK0", domain=[j, t], description="capital stock")
CC0 = Parameter(
m,
name="CC0",
domain=t,
description="composite consumption or felicity",
)
FF0 = Parameter(
m, name="FF0", domain=[h, t], description="factor endowment"
)
pf0 = Parameter(
m, name="pf0", domain=[h, j, t], description="factor price"
)
py0 = Parameter(
m, name="py0", domain=[j, t], description="composite factor price"
)
pz0 = Parameter(
m, name="pz0", domain=[j, t], description="gross output price"
)
pq0 = Parameter(
m,
name="pq0",
domain=[i, t],
description="Armington's composite good price",
)
pe0 = Parameter(
m,
name="pe0",
domain=[i, t],
description="export price in local currency",
)
pm0 = Parameter(
m,
name="pm0",
domain=[i, t],
description="import price in local currency",
)
pd0 = Parameter(
m, name="pd0", domain=[i, t], description="domestic good price"
)
pk0 = Parameter(
m, name="pk0", domain=t, description="composite investment goods price"
)
epsilon0 = Parameter(
m, name="epsilon0", domain=t, description="exchange rate"
)
PRICE0 = Parameter(
m, name="PRICE0", domain=t, description="numeraire price"
)
# Exogenous variables
Xg0 = Parameter(
m, name="Xg0", domain=[i, t], description="government consumption"
)
Sf0 = Parameter(
m, name="Sf0", domain=t, description="foreign savings in US dollars"
)
pWe = Parameter(
m, name="pWe", domain=i, description="export price in US dollars"
)
pWm = Parameter(
m, name="pWm", domain=i, description="import price in US dollars"
)
tauz = Parameter(
m, name="tauz", domain=i, description="production tax rate"
)
taum = Parameter(
m, name="taum", domain=i, description="import tariff rate"
)
# for result reporting
Y1 = Parameter(m, name="Y1", domain=[j, t], description="composite factor")
F1 = Parameter(m, name="F1", domain=[h, j, t], description="factor input")
X1 = Parameter(
m, name="X1", domain=[i, j, t], description="intermediate input"
)
Z1 = Parameter(m, name="Z1", domain=[j, t], description="gross output")
Xp1 = Parameter(
m, name="Xp1", domain=[i, t], description="household consumption"
)
Xv1 = Parameter(
m, name="Xv1", domain=[i, t], description="investment demand"
)
E1 = Parameter(m, name="E1", domain=[i, t], description="exports")
M1 = Parameter(m, name="M1", domain=[i, t], description="imports")
Q1 = Parameter(
m, name="Q1", domain=[i, t], description="Armington's composite good"
)
D1 = Parameter(m, name="D1", domain=[i, t], description="domestic good")
Sp1 = Parameter(m, name="Sp1", domain=t, description="private saving")
Td1 = Parameter(m, name="Td1", domain=t, description="direct tax")
Tz1 = Parameter(m, name="Tz1", domain=[j, t], description="production tax")
Tm1 = Parameter(m, name="Tm1", domain=[i, t], description="import tariff")
FF1 = Parameter(
m,
name="FF1",
domain=[h, t],
description="initial sectoral factor uses",
)
II1 = Parameter(
m, name="II1", domain=[j, t], description="sectoral investment"
)
III1 = Parameter(
m, name="III1", domain=t, description="composite investment"
)
KK1 = Parameter(
m, name="KK1", domain=[j, t], description="sectoral capital stock"
)
CC1 = Parameter(m, name="CC1", domain=t, description="utility")
tauz1 = Parameter(
m, name="tauz1", domain=[i, t], description="production tax rates"
)
taum1 = Parameter(
m, name="taum1", domain=[i, t], description="import tariff rates"
)
pz1 = Parameter(
m, name="pz1", domain=[j, t], description="gross output price"
)
pd1 = Parameter(
m, name="pd1", domain=[j, t], description="domestic good price"
)
pm1 = Parameter(m, name="pm1", domain=[j, t], description="import price")
pe1 = Parameter(m, name="pe1", domain=[j, t], description="export price")
pq1 = Parameter(
m,
name="pq1",
domain=[j, t],
description="Armington's composite good price",
)
pf1 = Parameter(
m, name="pf1", domain=[h, j, t], description="factor price"
)
py1 = Parameter(
m, name="py1", domain=[j, t], description="composite factor price"
)
epsilon1 = Parameter(
m, name="epsilon1", domain=t, description="foreign exchange rate"
)
pk1 = Parameter(m, name="pk1", domain=t, description="capital good price")
PRICE1 = Parameter(
m, name="PRICE1", domain=t, description="numeraire price"
)
Td00[...] = SAM["GOV", "HOH"]
Tz00[j] = SAM["IDT", j]
Tm00[j] = SAM["TRF", j]
F00[h, j] = SAM[h, j]
Y00[j] = Sum(h, F00[h, j])
X00[i, j] = SAM[i, j]
Z00[j] = Y00[j] + Sum(i, X00[i, j])
M00[i] = SAM["EXT", i]
tauz00[j] = Tz00[j] / Z00[j]
taum00[j] = Tm00[j] / M00[j]
Xp00[i] = SAM[i, "HOH"]
CC00[...] = Sum(i, Xp00[i])
FF00[h] = SAM["HOH", h]
E00[i] = SAM[i, "EXT"]
D00[i] = (1 + tauz00[i]) * Z00[i] - E00[i]
Q00[i] = (1 + taum00[i]) * M00[i] + D00[i]
Sf00[...] = SAM["INV", "EXT"]
# ===============================================================
# Adjusting Investment in the SAM for the Assumed BAU Growth Path
# ===============================================================
# Scalars
III_ASS = Parameter(
m,
name="III_ASS",
description="required investment for the assumed growth",
)
III_SAM = Parameter(
m, name="III_SAM", description="observed investment in the SAM"
)
adj = Parameter(
m, name="adj", description="III_ASS vs. III_SAM [>1:more than actual]"
)
III_ASS[...] = (pop + dep) / ror * FF00["CAP"]
III_SAM[...] = Sum(i, SAM[i, "INV"])
adj[...] = III_ASS / III_SAM
# Adjusting investment level
Xv00[i] = SAM[i, "INV"] * adj
# Reallocating the gap made by the inv. adjustment to gov. cons.
Xg00[i] = SAM[i, "GOV"] - (Xv00[i] - SAM[i, "INV"])
# Computing the direct tax revenue that balances the gov. budget
Td00[...] = Sum(i, Xg00[i]) - Sum(i, Tz00[i] + Tm00[i])
# Computing the household sav. that balances the household budget
Sp00[...] = Sum(h, FF00[h]) - (Sum(i, Xp00[i]) + Td00)
III00[...] = Sum(i, Xv00[i])
II00[j] = (Sp00 + Sf00) * F00["CAP", j] / Sum(i, F00["CAP", i])
KK00[j] = F00["CAP", j] / ror
# ===============================================================
# Computing the BAU path
# ===============================================================
Y0[j, t] = Y00[j] * (1 + pop) ** (Ord(t) - 1)
F0[h, j, t] = F00[h, j] * (1 + pop) ** (Ord(t) - 1)
X0[i, j, t] = X00[i, j] * (1 + pop) ** (Ord(t) - 1)
Z0[j, t] = Z00[j] * (1 + pop) ** (Ord(t) - 1)
Xp0[i, t] = Xp00[i] * (1 + pop) ** (Ord(t) - 1)
Xv0[i, t] = Xv00[i] * (1 + pop) ** (Ord(t) - 1)
E0[i, t] = E00[i] * (1 + pop) ** (Ord(t) - 1)
M0[i, t] = M00[i] * (1 + pop) ** (Ord(t) - 1)
Q0[i, t] = Q00[i] * (1 + pop) ** (Ord(t) - 1)
D0[i, t] = D00[i] * (1 + pop) ** (Ord(t) - 1)
FF0[h, t] = FF00[h] * (1 + pop) ** (Ord(t) - 1)
III0[t] = III00 * (1 + pop) ** (Ord(t) - 1)
II0[j, t] = II00[j] * (1 + pop) ** (Ord(t) - 1)
KK0[j, t] = KK00[j] * (1 + pop) ** (Ord(t) - 1)
CC0[t] = CC00 * (1 + pop) ** (Ord(t) - 1)
Sp0[t] = Sp00 * (1 + pop) ** (Ord(t) - 1)
Td0[t] = Td00 * (1 + pop) ** (Ord(t) - 1)
Tz0[j, t] = Tz00[j] * (1 + pop) ** (Ord(t) - 1)
Tm0[i, t] = Tm00[i] * (1 + pop) ** (Ord(t) - 1)
pf0[h, j, t] = 1
py0[j, t] = 1
pz0[j, t] = 1
pq0[i, t] = 1
pe0[i, t] = 1
pm0[i, t] = 1
pd0[i, t] = 1
pk0[t] = 1
epsilon0[t] = 1
PRICE0[t] = 1
# Setting exogenous variables
Xg0[i, t] = Xg00[i] * (1 + pop) ** (Ord(t) - 1)
Sf0[t] = Sf00 * (1 + pop) ** (Ord(t) - 1)
pWe[i] = 1
pWm[i] = 1
tauz[i] = tauz00[i]
taum[i] = taum00[i]
# ===============================================================
# Calibration ---------------------------------------------------
# ===============================================================
# Parameters
sigma = Parameter(
m, name="sigma", domain=i, description="elasticity of substitution"
)
psi = Parameter(
m, name="psi", domain=i, description="elasticity of transformation"
)
eta = Parameter(
m,
name="eta",
domain=i,
description="substitution elasticity parameter",
)
phi = Parameter(
m,
name="phi",
domain=i,
description="transformation elasticity parameter",
)
sigma[i] = 2
psi[i] = 2
eta[i] = (sigma[i] - 1) / sigma[i]
phi[i] = (psi[i] + 1) / psi[i]
# Parameters
alpha = Parameter(
m,
name="alpha",
domain=i,
description="share par. in composite cons. func.",
)
a = Parameter(
m, name="a", description="scale par. in composite cons. func."
)
beta = Parameter(
m,
name="beta",
domain=[h, j],
description="share par. in production func.",
)
b = Parameter(
m, name="b", domain=j, description="scale par. in production func."
)
ax = Parameter(
m,
name="ax",
domain=[i, j],
description="intermediate input requirement coeff.",
)
ay = Parameter(
m, name="ay", domain=j, description="composite fact. input req. coeff."
)
lamda = Parameter(
m, name="lamda", domain=i, description="investment demand share"
)
iota = Parameter(
m, name="iota", description="scale par. in comp. inv. prod. func."
)
deltam = Parameter(
m, name="deltam", domain=i, description="share par. in Armington func."
)
deltad = Parameter(
m, name="deltad", domain=i, description="share par. in Armington func."
)
gamma = Parameter(
m, name="gamma", domain=i, description="scale par. in Armington func."
)
xid = Parameter(
m,
name="xid",
domain=i,
description="share par. in transformation func.",
)
xie = Parameter(
m,
name="xie",
domain=i,
description="share par. in transformation func.",
)
theta = Parameter(
m,
name="theta",
domain=i,
description="scale par. in transformation func.",
)
ssp = Parameter(m, name="ssp", description="propensity to save")
alpha[i] = Xp00[i] / Sum(j, Xp00[j])
a[...] = CC00 / Product(j, Xp00[j] ** alpha[j])
beta[h, j] = F00[h, j] / Sum(k, F00[k, j])
b[j] = Y00[j] / Product(h, F00[h, j] ** beta[h, j])
ax[i, j] = X00[i, j] / Z00[j]
ay[j] = Y00[j] / Z00[j]
lamda[i] = Xv00[i] / Sum(j, Xv00[j])
iota[...] = III00 / Product(i, Xv00[i] ** lamda[i])
deltam[i] = (
(1 + taum00[i])
* M00[i] ** (1 - eta[i])
/ ((1 + taum00[i]) * M00[i] ** (1 - eta[i]) + D00[i] ** (1 - eta[i]))
)
deltad[i] = D00[i] ** (1 - eta[i]) / (
(1 + taum00[i]) * M00[i] ** (1 - eta[i]) + D00[i] ** (1 - eta[i])
)
gamma[i] = Q00[i] / (
deltam[i] * M00[i] ** eta[i] + deltad[i] * D00[i] ** eta[i]
) ** (1 / eta[i])
xie[i] = E00[i] ** (1 - phi[i]) / (
E00[i] ** (1 - phi[i]) + D00[i] ** (1 - phi[i])
)
xid[i] = D00[i] ** (1 - phi[i]) / (
E00[i] ** (1 - phi[i]) + D00[i] ** (1 - phi[i])
)
theta[i] = Z00[i] / (
xie[i] * E00[i] ** phi[i] + xid[i] * D00[i] ** phi[i]
) ** (1 / phi[i])
ssp[...] = Sp00 / (Sum([h, j], F00[h, j]) - Td00)
# ===============================================================
# Defining model system -----------------------------------------
# ===============================================================
# Variables
Y = Variable(
m, name="Y", type="free", domain=j, description="composite factor"
)
F = Variable(
m, name="F", type="free", domain=[h, j], description="factor input"
)
X = Variable(
m,
name="X",
type="free",
domain=[i, j],
description="intermediate input",
)
Z = Variable(
m, name="Z", type="free", domain=j, description="gross domestic output"
)
Xp = Variable(
m,
name="Xp",
type="free",
domain=i,
description="household consumption",
)
Xg = Variable(
m,
name="Xg",
type="free",
domain=i,
description="government consumption",
)
Xv = Variable(
m, name="Xv", type="free", domain=i, description="investment demand"
)
E = Variable(m, name="E", type="free", domain=i, description="exports")
M = Variable(m, name="M", type="free", domain=i, description="imports")
Q = Variable(
m,
name="Q",
type="free",
domain=i,
description="Armington's composite good",
)
D = Variable(
m, name="D", type="free", domain=i, description="domestic good"
)
FF = Variable(
m, name="FF", type="free", domain=h, description="factor endowments"
)
pf = Variable(
m, name="pf", type="free", domain=[h, j], description="factor price"
)
py = Variable(
m,
name="py",
type="free",
domain=j,
description="composite factor price",
)
pz = Variable(
m,
name="pz",
type="free",
domain=j,
description="supply price of gross domestic output",
)
pq = Variable(
m,
name="pq",
type="free",
domain=i,
description="Armington's composite good price",
)
pe = Variable(
m,
name="pe",
type="free",
domain=i,
description="export price in local currency",
)
pm = Variable(
m,
name="pm",
type="free",
domain=i,
description="import price in local currency",
)
pd = Variable(
m, name="pd", type="free", domain=i, description="domestic good price"
)
pk = Variable(
m,
name="pk",
type="free",
description="composite investment goods price",
)
epsilon = Variable(
m, name="epsilon", type="free", description="exchange rate"
)
Sp = Variable(m, name="Sp", type="free", description="private savings")
Sf = Variable(m, name="Sf", type="free", description="foreign savings")
Td = Variable(m, name="Td", type="free", description="direct tax")
Tz = Variable(
m, name="Tz", type="free", domain=j, description="production tax"
)
Tm = Variable(
m, name="Tm", type="free", domain=i, description="import tariff"
)
KK = Variable(
m, name="KK", type="free", domain=j, description="capital stock"
)
II = Variable(
m, name="II", type="free", domain=j, description="sectoral investment"
)
III = Variable(
m, name="III", type="free", description="composite investment"
)
PRICE = Variable(
m, name="PRICE", type="free", description="numeraire price"
)
CC = Variable(
m, name="CC", type="free", description="composite consumption"
)
# Equations
eqpy = Equation(
m, name="eqpy", domain=j, description="composite factor prod. func."
)
eqF = Equation(
m, name="eqF", domain=[h, j], description="factor demand function"
)
eqX = Equation(
m,
name="eqX",
domain=[i, j],
description="intermediate demand function",
)
eqY = Equation(
m, name="eqY", domain=j, description="composite factor demand function"
)
eqpzs = Equation(
m, name="eqpzs", domain=j, description="unit cost function"
)
eqTd = Equation(m, name="eqTd", description="direct tax revenue function")
eqTz = Equation(
m, name="eqTz", domain=j, description="production tax revenue function"
)
eqTm = Equation(
m, name="eqTm", domain=i, description="import tariff revenue function"
)
eqXv = Equation(
m, name="eqXv", domain=i, description="investment demand function"
)
eqSp = Equation(m, name="eqSp", description="private saving function")
eqXp = Equation(
m, name="eqXp", domain=i, description="household demand function"
)
eqpe = Equation(
m, name="eqpe", domain=i, description="world export price equation"
)
eqpm = Equation(
m, name="eqpm", domain=i, description="world import price equation"
)
eqepsilon = Equation(
m, name="eqepsilon", description="balance of payments"
)
eqpqs = Equation(
m, name="eqpqs", domain=i, description="Armington function"
)
eqM = Equation(
m, name="eqM", domain=i, description="import demand function"
)
eqD = Equation(
m, name="eqD", domain=i, description="domestic good demand function"
)
eqpzd = Equation(
m, name="eqpzd", domain=i, description="transformation function"
)
eqE = Equation(
m, name="eqE", domain=i, description="export supply function"
)
eqDs = Equation(
m, name="eqDs", domain=i, description="domestic good supply function"
)
eqpqd = Equation(
m,
name="eqpqd",
domain=i,
description="market clearing cond. for comp. good",
)
eqpf1 = Equation(
m,
name="eqpf1",
domain=[h_mob],
description="mobile factor market clearing cond.",
)
eqpf2 = Equation(
m,
name="eqpf2",
domain=[h_mob, i, j],
description="mobile factor market clearing cond.",
)
eqpf3 = Equation(
m,
name="eqpf3",
domain=j,
description="immobile factor market clearing cond.",
)
eqpk = Equation(
m, name="eqpk", description="composite inv. goods mar. clear. cond."
)
eqIII = Equation(
m, name="eqIII", description="composite inv. goods production func."
)
eqII = Equation(
m,
name="eqII",
domain=j,
description="evolution of target capital stocks",
)
eqCC = Equation(
m, name="eqCC", description="composite consumption production func."
)
eqPRICE = Equation(m, name="eqPRICE", description="numeraire price")
# ===============================================================
# Model equations
# ===============================================================
# [domestic production] -
# composite factor production func. (Cobb-Douglas)
eqpy[j] = Y[j] == b[j] * Product(h, F[h, j] ** beta[h, j])
# factor demand function (Cobb-Douglas)
eqF[h, j] = F[h, j] == beta[h, j] * py[j] * Y[j] / pf[h, j]
# intermediate input demand function (Leontief)
eqX[i, j] = X[i, j] == ax[i, j] * Z[j]
# composite factor demand function (Leontief)
eqY[j] = Y[j] == ay[j] * Z[j]
# unit price of gross output (Leontief)
eqpzs[j] = pz[j] == ay[j] * py[j] + Sum(i, ax[i, j] * pq[i])
# [government behavior] -
# lump Sum direct tax revenue
eqTd[...] = Td == Sum(i, pq[i] * Xg[i]) - Sum(i, Tm[i] + Tz[i])
# production tax revenue
eqTz[j] = Tz[j] == tauz[j] * pz[j] * Z[j]
# import tariff revenue
eqTm[i] = Tm[i] == taum[i] * pm[i] * M[i]
# [investment behavior] -
# composite investment production function
eqXv[i] = Xv[i] == lamda[i] * pk * Sum(j, II[j]) / pq[i]
# [savings] ----------
# savings function
eqSp[...] = Sp == ssp * (Sum([h, j], pf[h, j] * F[h, j]) - Td)
# [household consumption] -- (Cobb-Douglas)
eqXp[i] = (
Xp[i] == alpha[i] * (Sum([h, j], pf[h, j] * F[h, j]) - Sp - Td) / pq[i]
)
# [international trade] --
eqpe[i] = pe[i] == epsilon * pWe[i]
eqpm[i] = pm[i] == epsilon * pWm[i]
# BOP constraint
eqepsilon[...] = Sum(i, pWe[i] * E[i]) + Sf == Sum(i, pWm[i] * M[i])
# [Armington function] --
# Armington's composite good production function (CES)
eqpqs[i] = Q[i] == gamma[i] * (
deltam[i] * M[i] ** eta[i] + deltad[i] * D[i] ** eta[i]
) ** (1 / eta[i])
# import demand function (CES)
eqM[i] = (
M[i]
== (gamma[i] ** eta[i] * deltam[i] * pq[i] / ((1 + taum[i]) * pm[i]))
** (1 / (1 - eta[i]))
* Q[i]
)
# domestic good demand function (CES)
eqD[i] = (
D[i]
== (gamma[i] ** eta[i] * deltad[i] * pq[i] / pd[i])
** (1 / (1 - eta[i]))
* Q[i]
)
# [transformation function] --
# gross domestic output disaggregation function (CET)
eqpzd[i] = Z[i] == theta[i] * (
xie[i] * E[i] ** phi[i] + xid[i] * D[i] ** phi[i]
) ** (1 / phi[i])
# export supply function (CET)
eqE[i] = (
E[i]
== (theta[i] ** phi[i] * xie[i] * (1 + tauz[i]) * pz[i] / pe[i])
** (1 / (1 - phi[i]))
* Z[i]
)
# domestic good supply function (CET)
eqDs[i] = (
D[i]
== (theta[i] ** phi[i] * xid[i] * (1 + tauz[i]) * pz[i] / pd[i])
** (1 / (1 - phi[i]))
* Z[i]
)
# [market clearing condition]
# Arminton's composite good market
eqpqd[i] = Q[i] == Xp[i] + Xg[i] + Xv[i] + Sum(j, X[i, j])
# labor market: quantity
eqpf1[h_mob] = Sum(j, F[h_mob, j]) == FF[h_mob]
# labor market: price
eqpf2[h_mob, i, j] = pf[h_mob, j] == pf[h_mob, i]
# capital market
eqpf3[j] = F["CAP", j] == ror * KK[j]
# investment goods market
eqpk[...] = Sum(j, II[j]) == III
# [dynamic equations]
# composite investment good market clearing condition
eqIII[...] = III == iota * Product(i, Xv[i] ** lamda[i])
# sectoral investment allocation
eqII[j] = pk * II[j] == pf["CAP", j] ** zeta * F["CAP", j] / Sum(
i, pf["CAP", i] ** zeta * F["CAP", i]
) * (Sp + epsilon * Sf)
# felicity function
eqCC[...] = CC == a * Product(i, Xp[i] ** alpha[i])
# Price level [numeraire]
eqPRICE[...] = PRICE == Sum(j, pq[j] * Q00[j] / Sum(i, Q00[i]))
# ===============================================================
# Initializing variables ----------------------------------------
# ===============================================================
Y.l[j] = Y00[j]
F.l[h, j] = F00[h, j]
X.l[i, j] = X00[i, j]
Z.l[j] = Z00[j]
Xp.l[i] = Xp00[i]
Xv.l[i] = Xv00[i]
E.l[i] = E00[i]
M.l[i] = M00[i]
Q.l[i] = Q00[i]
D.l[i] = D00[i]
pf.l[h, j] = 1
py.l[j] = 1
pz.l[j] = 1
pq.l[i] = 1
pe.l[i] = 1
pm.l[i] = 1
pd.l[i] = 1
pk.l[...] = 1
epsilon.l[...] = 1
Sp.l[...] = Sp00
Td.l[...] = Td00
Tz.l[j] = Tz00[j]
Tm.l[i] = Tm00[i]
FF.l[h] = FF00[h]
III.l[...] = III00
II.l[j] = II00[j]
# ---------------------------------------------------------------
# Numeraire
PRICE.fx[...] = 1
# Initial factor endowments and exogenous variables
FF.fx[h_mob] = FF00[h_mob]
KK.fx[j] = KK00[j]
Xg.fx[i] = Xg00[i]
Sf.fx[...] = Sf00
# ===============================================================
# Defining and solving the model --------------------------------
# ===============================================================
dyncge = Model(
m,
name="dyncge",
equations=m.getEquations(),
problem=Problem.NLP,
sense=Sense.MAX,
objective=CC,
)
dyncge.solve()
# ===============================================================
# Simulation Runs: Abolition of Import Tariffs
# ===============================================================
# Scenario:
taum[i] = taum00[i] * 0
for iteration, _ in t.records.itertuples(index=False):
dyncge.solve()
# storing results -------------------------
Y1[j, iteration] = Y.l[j]
F1[h, j, iteration] = F.l[h, j]
X1[i, j, iteration] = X.l[i, j]
Z1[j, iteration] = Z.l[j]
Xp1[i, iteration] = Xp.l[i]
Xv1[i, iteration] = Xv.l[i]
E1[i, iteration] = E.l[i]
M1[i, iteration] = M.l[i]
Q1[i, iteration] = Q.l[i]
D1[i, iteration] = D.l[i]
Sp1[iteration] = Sp.l
Td1[iteration] = Td.l
Tz1[j, iteration] = Tz.l[j]
Tm1[i, iteration] = Tm.l[i]
FF1[h, iteration] = FF.l[h]
II1[j, iteration] = II.l[j]
III1[iteration] = III.l
KK1[j, iteration] = KK.l[j]
CC1[iteration] = CC.l
tauz1[i, iteration] = tauz[i]
taum1[i, iteration] = taum[i]
pf1[h, j, iteration] = pf.l[h, j]
py1[j, iteration] = py.l[j]
pz1[j, iteration] = pz.l[j]
pd1[j, iteration] = pd.l[j]
pe1[j, iteration] = pe.l[j]
pm1[j, iteration] = pm.l[j]
pq1[j, iteration] = pq.l[j]
pk1[iteration] = pk.l
epsilon1[iteration] = epsilon.l
PRICE1[iteration] = PRICE.l
# updating the state variables --------------
FF.fx[h_mob] = FF.l[h_mob] * (1 + pop)
KK.fx[j] = (1 - dep) * KK.l[j] + II.l[j]
if int(iteration) < 30:
Xg.fx[i] = Xg0[i, str(int(iteration) + 1)]
Sf.fx[...] = Sf0[str(int(iteration) + 1)]
# ===============================================================
# Aftermath Computation
# ===============================================================
# Display of changes --------------------------------------------
import math
assert math.isclose(dyncge.objective_value, 539570.5027, rel_tol=0.001)
# Parameters
# changes
dY = Parameter(
m,
name="dY",
domain=[j, t],
description="change of composite factor [%]",
)
dF = Parameter(
m,
name="dF",
domain=[h, j, t],
description="change of factor input [%]",
)
dX = Parameter(
m,
name="dX",
domain=[i, j, t],
description="change of intermediate input [%]",
)
dZ = Parameter(
m,
name="dZ",
domain=[j, t],
description="change of gross output [%]",
)
dXp = Parameter(
m,
name="dXp",
domain=[i, t],
description="change of household consumption [%]",
)
dXv = Parameter(
m,
name="dXv",
domain=[i, t],
description="change of investment demand [%]",
)
dE = Parameter(
m,
name="dE",
domain=[i, t],
description="change of exports [%]",
)
dM = Parameter(
m,
name="dM",
domain=[i, t],
description="change of imports [%]",
)
dQ = Parameter(
m,
name="dQ",
domain=[i, t],
description="change of Armington's composite good [%]",
)
dD = Parameter(
m,
name="dD",
domain=[i, t],
description="change of domestic good [%]",
)
dSp = Parameter(
m,
name="dSp",
domain=t,
description="change of private saving [%]",
)
dTd = Parameter(
m,
name="dTd",
domain=t,
description="change of direct tax [%]",
)
dTz = Parameter(
m,
name="dTz",
domain=[j, t],
description="change of production tax [%]",
)
dTm = Parameter(
m,
name="dTm",
domain=[i, t],
description="change of import tariff [%]",
)
dFF = Parameter(
m,
name="dFF",
domain=[h, t],
description="change of initial sectoral factor uses [%]",
)
dKK = Parameter(
m,
name="dKK",
domain=[j, t],
description="change of sectoral capital stock [%]",
)
dII = Parameter(
m,
name="dII",
domain=[j, t],
description="change of sectoral investment [%]",
)
dIII = Parameter(
m,
name="dIII",
domain=t,
description="change of composite investment [%]",
)
dCC = Parameter(
m,
name="dCC",
domain=t,
description="change of utility [%]",
)
dpz = Parameter(
m,
name="dpz",
domain=[j, t],
description="change of gross output price [%]",
)
dpd = Parameter(
m,
name="dpd",
domain=[j, t],
description="change of domestic good price [%]",
)
dpm = Parameter(
m,
name="dpm",
domain=[j, t],
description="change of import price [%]",
)
dpe = Parameter(
m,
name="dpe",
domain=[j, t],
description="change of export price [%]",
)
dpq = Parameter(
m,
name="dpq",
domain=[j, t],
description="change of Armington's comp. good price [%]",
)
dpf = Parameter(
m,
name="dpf",
domain=[h, j, t],
description="change of factor price [%]",
)
dpy = Parameter(
m,
name="dpy",
domain=[j, t],
description="change of composite factor price [%]",
)
depsilon = Parameter(
m,
name="depsilon",
domain=t,
description="change of foreign exchange rate [%]",
)
dpk = Parameter(
m,
name="dpk",
domain=t,
description="change of capital good price [%]",
)
# BAU growth rate
gY0 = Parameter(
m,
name="gY0",
domain=[j, t],
description="growth of composite factor [%]",
)
gF0 = Parameter(
m,
name="gF0",
domain=[h, j, t],
description="growth of factor input [%]",
)
gX0 = Parameter(
m,
name="gX0",
domain=[i, j, t],
description="growth of intermediate input [%]",
)
gZ0 = Parameter(
m,
name="gZ0",
domain=[j, t],
description="growth of gross output [%]",
)
gXp0 = Parameter(
m,
name="gXp0",
domain=[i, t],
description="growth of household consumption [%]",
)
gXv0 = Parameter(
m,
name="gXv0",
domain=[i, t],
description="growth of investment demand [%]",
)
gE0 = Parameter(
m,
name="gE0",
domain=[i, t],
description="growth of exports [%]",
)
gM0 = Parameter(
m,
name="gM0",
domain=[i, t],
description="growth of imports [%]",
)
gQ0 = Parameter(
m,
name="gQ0",
domain=[i, t],
description="growth of Armington's composite good [%]",
)
gD0 = Parameter(
m,
name="gD0",
domain=[i, t],
description="growth of domestic good [%]",
)
gSp0 = Parameter(
m,
name="gSp0",
domain=t,
description="growth of private saving [%]",
)
gTd0 = Parameter(
m,
name="gTd0",
domain=t,
description="growth of direct tax [%]",
)
gTz0 = Parameter(
m,
name="gTz0",
domain=[j, t],
description="growth of production tax [%]",
)
gTm0 = Parameter(
m,
name="gTm0",
domain=[i, t],
description="growth of import tariff [%]",
)
gFF0 = Parameter(
m,
name="gFF0",
domain=[h, t],
description="growth of initial sectoral factor uses [%]",
)
gKK0 = Parameter(
m,
name="gKK0",
domain=[j, t],
description="growth of sectoral capital stock [%]",
)
gII0 = Parameter(
m,
name="gII0",
domain=[j, t],
description="growth of sectoral investment [%]",
)
gIII0 = Parameter(
m,
name="gIII0",
domain=t,
description="growth of composite investment [%]",
)
gCC0 = Parameter(
m,
name="gCC0",
domain=t,
description="growth of growth rate of CC [%]",
)
# C/F growth rate
gY1 = Parameter(
m,
name="gY1",
domain=[j, t],
description="growth of composite factor [%]",
)
gF1 = Parameter(
m,
name="gF1",
domain=[h, j, t],
description="growth of factor input [%]",
)
gX1 = Parameter(
m,
name="gX1",
domain=[i, j, t],
description="growth of intermediate input [%]",
)
gZ1 = Parameter(
m,
name="gZ1",
domain=[j, t],
description="growth of gross output [%]",
)
gXp1 = Parameter(
m,
name="gXp1",
domain=[i, t],
description="growth of household consumption [%]",
)
gXv1 = Parameter(
m,
name="gXv1",
domain=[i, t],
description="growth of investment demand [%]",
)
gE1 = Parameter(
m,
name="gE1",
domain=[i, t],
description="growth of exports [%]",
)
gM1 = Parameter(
m,
name="gM1",
domain=[i, t],
description="growth of imports [%]",
)
gQ1 = Parameter(
m,
name="gQ1",
domain=[i, t],
description="growth of Armington's composite good [%]",
)
gD1 = Parameter(
m,
name="gD1",
domain=[i, t],
description="growth of domestic good [%]",
)
gSp1 = Parameter(
m,
name="gSp1",
domain=t,
description="growth of private saving [%]",
)
gTd1 = Parameter(
m,
name="gTd1",
domain=t,
description="growth of direct tax [%]",
)
gTz1 = Parameter(
m,
name="gTz1",
domain=[j, t],
description="growth of production tax [%]",
)
gTm1 = Parameter(
m,
name="gTm1",
domain=[i, t],
description="growth of import tariff [%]",
)
gFF1 = Parameter(
m,
name="gFF1",
domain=[h, t],
description="growth of initial sectoral factor uses [%]",
)
gKK1 = Parameter(
m,
name="gKK1",
domain=[j, t],
description="growth of sectoral capital stock [%]",
)
gII1 = Parameter(
m,
name="gII1",
domain=[j, t],
description="growth of sectoral investment [%]",
)
gIII1 = Parameter(
m,
name="gIII1",
domain=t,
description="growth of composite investment [%]",
)
gCC1 = Parameter(
m,
name="gCC1",
domain=t,
description="growth of growth rate of CC [%]",
)
# welfare
EV = Parameter(
m, name="EV", domain=t, description="equivalent variations [current]"
)
EV_TTL = Parameter(
m, name="EV_TTL", description="total EV [discounted Sum]"
)
dY[j, t].where[Y0[j, t]] = (Y1[j, t] / Y0[j, t] - 1) * 100
dF[h, j, t].where[F0[h, j, t]] = (F1[h, j, t] / F0[h, j, t] - 1) * 100
dX[i, j, t].where[X0[i, j, t]] = (X1[i, j, t] / X0[i, j, t] - 1) * 100
dZ[j, t].where[Z0[j, t]] = (Z1[j, t] / Z0[j, t] - 1) * 100
dXp[i, t].where[Xp0[i, t]] = (Xp1[i, t] / Xp0[i, t] - 1) * 100
dXv[i, t].where[Xv0[i, t]] = (Xv1[i, t] / Xv0[i, t] - 1) * 100
dE[i, t].where[E0[i, t]] = (E1[i, t] / E0[i, t] - 1) * 100
dM[i, t].where[M0[i, t]] = (M1[i, t] / M0[i, t] - 1) * 100
dQ[i, t].where[Q0[i, t]] = (Q1[i, t] / Q0[i, t] - 1) * 100
dD[i, t].where[D0[i, t]] = (D1[i, t] / D0[i, t] - 1) * 100
dSp[t].where[Sp0[t]] = (Sp1[t] / Sp0[t] - 1) * 100
dTd[t].where[Td0[t]] = (Td1[t] / Td0[t] - 1) * 100
dTz[j, t].where[Tz0[j, t]] = (Tz1[j, t] / Tz0[j, t] - 1) * 100
dTm[i, t].where[Tm0[i, t]] = (Tm1[i, t] / Tm0[i, t] - 1) * 100
dFF[h, t].where[FF0[h, t]] = (FF1[h, t] / FF0[h, t] - 1) * 100
dII[j, t].where[II0[j, t]] = (II1[j, t] / II0[j, t] - 1) * 100
dIII[t].where[III0[t]] = (III1[t] / III0[t] - 1) * 100
dKK[j, t].where[KK0[j, t]] = (KK1[j, t] / KK0[j, t] - 1) * 100
dCC[t].where[CC0[t]] = (CC1[t] / CC0[t] - 1) * 100
dpz[j, t].where[pz0[j, t]] = (pz1[j, t] / pz0[j, t] - 1) * 100
dpd[j, t].where[pd0[j, t]] = (pd1[j, t] / pd0[j, t] - 1) * 100
dpm[j, t].where[pm0[j, t]] = (pm1[j, t] / pm0[j, t] - 1) * 100
dpe[j, t].where[pe0[j, t]] = (pe1[j, t] / pe0[j, t] - 1) * 100
dpq[j, t].where[pq0[j, t]] = (pq1[j, t] / pq0[j, t] - 1) * 100
dpf[h, j, t].where[pf0[h, j, t]] = (pf1[h, j, t] / pf0[h, j, t] - 1) * 100
dpy[j, t].where[py0[j, t]] = (py1[j, t] / py0[j, t] - 1) * 100
depsilon[t].where[epsilon0[t]] = (epsilon1[t] / epsilon0[t] - 1) * 100
dpk[t].where[pk0[t]] = (pk1[t] / pk0[t] - 1) * 100
gY0[j, t.lead(1)].where[Y0[j, t]] = (Y0[j, t.lead(1)] / Y0[j, t] - 1) * 100
gF0[h, j, t.lead(1)].where[F0[h, j, t]] = (
F0[h, j, t.lead(1)] / F0[h, j, t] - 1
) * 100
gX0[i, j, t.lead(1)].where[X0[i, j, t]] = (
X0[i, j, t.lead(1)] / X0[i, j, t] - 1
) * 100
gZ0[j, t.lead(1)].where[Z0[j, t]] = (Z0[j, t.lead(1)] / Z0[j, t] - 1) * 100
gXp0[i, t.lead(1)].where[Xp0[i, t]] = (
Xp0[i, t.lead(1)] / Xp0[i, t] - 1
) * 100
gXv0[i, t.lead(1)].where[Xv0[i, t]] = (
Xv0[i, t.lead(1)] / Xv0[i, t] - 1
) * 100
gE0[i, t.lead(1)].where[E0[i, t]] = (E0[i, t.lead(1)] / E0[i, t] - 1) * 100
gM0[i, t.lead(1)].where[M0[i, t]] = (M0[i, t.lead(1)] / M0[i, t] - 1) * 100
gQ0[i, t.lead(1)].where[Q0[i, t]] = (Q0[i, t.lead(1)] / Q0[i, t] - 1) * 100
gD0[i, t.lead(1)].where[D0[i, t]] = (D0[i, t.lead(1)] / D0[i, t] - 1) * 100
gSp0[t.lead(1)].where[Sp0[t]] = (Sp0[t.lead(1)] / Sp0[t] - 1) * 100
gTd0[t.lead(1)].where[Td0[t]] = (Td0[t.lead(1)] / Td0[t] - 1) * 100
gTz0[j, t.lead(1)].where[Tz0[j, t]] = (
Tz0[j, t.lead(1)] / Tz0[j, t] - 1
) * 100
gTm0[i, t.lead(1)].where[Tm0[i, t]] = (
Tm0[i, t.lead(1)] / Tm0[i, t] - 1
) * 100
gFF0[h, t.lead(1)].where[FF0[h, t]] = (
FF0[h, t.lead(1)] / FF0[h, t] - 1
) * 100
gII0[j, t.lead(1)].where[II0[j, t]] = (
II0[j, t.lead(1)] / II0[j, t] - 1
) * 100
gIII0[t.lead(1)].where[III0[t]] = (III0[t.lead(1)] / III0[t] - 1) * 100
gKK0[j, t.lead(1)].where[KK0[j, t]] = (
KK0[j, t.lead(1)] / KK0[j, t] - 1
) * 100
gCC0[t.lead(1)].where[CC0[t]] = (CC0[t.lead(1)] / CC0[t] - 1) * 100
gY1[j, t.lead(1)].where[Y1[j, t]] = (Y1[j, t.lead(1)] / Y1[j, t] - 1) * 100
gF1[h, j, t.lead(1)].where[F1[h, j, t]] = (
F1[h, j, t.lead(1)] / F1[h, j, t] - 1
) * 100
gX1[i, j, t.lead(1)].where[X1[i, j, t]] = (
X1[i, j, t.lead(1)] / X1[i, j, t] - 1
) * 100
gZ1[j, t.lead(1)].where[Z1[j, t]] = (Z1[j, t.lead(1)] / Z1[j, t] - 1) * 100
gXp1[i, t.lead(1)].where[Xp1[i, t]] = (
Xp1[i, t.lead(1)] / Xp1[i, t] - 1
) * 100
gXv1[i, t.lead(1)].where[Xv1[i, t]] = (
Xv1[i, t.lead(1)] / Xv1[i, t] - 1
) * 100
gE1[i, t.lead(1)].where[E1[i, t]] = (E1[i, t.lead(1)] / E1[i, t] - 1) * 100
gM1[i, t.lead(1)].where[M1[i, t]] = (M1[i, t.lead(1)] / M1[i, t] - 1) * 100
gQ1[i, t.lead(1)].where[Q1[i, t]] = (Q1[i, t.lead(1)] / Q1[i, t] - 1) * 100
gD1[i, t.lead(1)].where[D1[i, t]] = (D1[i, t.lead(1)] / D1[i, t] - 1) * 100
gSp1[t.lead(1)].where[Sp1[t]] = (Sp1[t.lead(1)] / Sp1[t] - 1) * 100
gTd1[t.lead(1)].where[Td1[t]] = (Td1[t.lead(1)] / Td1[t] - 1) * 100
gTz1[j, t.lead(1)].where[Tz1[j, t]] = (
Tz1[j, t.lead(1)] / Tz1[j, t] - 1
) * 100
gTm1[i, t.lead(1)].where[Tm1[i, t]] = (
Tm1[i, t.lead(1)] / Tm1[i, t] - 1
) * 100
gFF1[h, t.lead(1)].where[FF1[h, t]] = (
FF1[h, t.lead(1)] / FF1[h, t] - 1
) * 100
gII1[j, t.lead(1)].where[II1[j, t]] = (
II1[j, t.lead(1)] / II1[j, t] - 1
) * 100
gIII1[t.lead(1)].where[III1[t]] = (III1[t.lead(1)] / III1[t] - 1) * 100
gKK1[j, t.lead(1)].where[KK1[j, t]] = (
KK1[j, t.lead(1)] / KK1[j, t] - 1
) * 100
gCC1[t.lead(1)].where[CC1[t]] = (CC1[t.lead(1)] / CC1[t] - 1) * 100
# Welfare measure: Hicksian equivalent variations ---------------
EV[t] = (CC1[t] - CC0[t]) / a / Product(i, (alpha[i] / 1) ** alpha[i])
EV_TTL[...] = Sum(t, EV[t] / (1 + ror) ** (Ord(t) - 1))
print("EV_TTL: ", round(EV_TTL.records.value[0], 3))
if __name__ == "__main__":
main()
