GAMS 2.25.078 SPARC/SOLARIS 09/27/99 08:44:31 PAGE 1 G e n e r a l A l g e b r a i c M o d e l i n g S y s t e m C o m p i l a t i o n 1 * 2 * PROTO.GMS 1.01 3 * Oct 92 (PJW) 4 * 5 * GAMS program to compute a base case solution for a small 6 * prototype general equilibrium model. 7 * 8 9 * 10 * Turn off the symbol table and symbol listing. Also turn off the 11 * equation and variable listing produced by the solve statement. 12 * Generally this should only be done after a model is working properly. 13 * 14 16 OPTION LIMROW=0, LIMCOL=0; 17 18 * 19 * These are the model's parameters: 20 * 21 22 SCALAR a Utility function parameter / 0.285 /; 23 SCALAR b Production function parameter / 2.040 /; 24 25 * 26 * These are exogenous variables: 27 * 28 29 SCALAR h Total endowment of hours / 100.0 /; 30 SCALAR t Initial tax rate / 0.200 /; 31 SCALAR p Numeraire price / 1.000 /; 32 33 * 34 * These are the endogenous variables: 35 * 36 37 VARIABLES 38 y Income 39 w Wage rate 40 s Subsidy to households 41 c Quantity consumed 42 l Labor supplied 43 j Leisure consumed 44 q Quantity produced 45 x Intermediate goods demanded 46 wal Difference between RHS and LHS of walras equation 47 z Dummy for solver ; 48 49 * 50 * Here are the equations: 51 * 52 53 EQUATIONS 54 income Household income accounting identity 55 consum Household demand for goods 56 leisure Household demand for leisure 57 laborsup Household supply of labor 58 labordem Demand for labor by firms 59 intdem Intermediate goods demanded by firms 60 price Price from firm's cost function 61 govbudget Government budget constraint 62 walchk Error in Walras Law equation GAMS 2.25.078 SPARC/SOLARIS 09/27/99 08:44:31 PAGE 2 G e n e r a l A l g e b r a i c M o d e l i n g S y s t e m C o m p i l a t i o n 63 dummy Dummy equation for solver ; 64 65 income.. y =e= w*h + s ; 66 consum.. p*(1+t)*c =e= a*y ; 67 leisure.. w*j =e= (1-a)*y ; 68 laborsup.. w*l =e= a*y - s ; 69 labordem.. l =e= q/b ; 70 intdem.. x =e= q/b ; 71 price.. p =e= w/(b-1) ; 72 govbudget.. t*p*c =e= s ; 73 walchk.. wal =e= q-x-c ; 74 dummy.. z =e= 1000 ; 75 76 * 77 * The model consists of all of the equations 78 * 79 80 MODEL proto /ALL/; 81 82 * 83 * Solve it using Nonlinear programming. Must give the 84 * algorithm something to minimize so use a dummy variable. 85 * 86 87 SOLVE proto USING NLP MINIMIZING z; 88 89 COMPILATION TIME = 0.010 SECONDS VERID SOL-25-078 GAMS 2.25.078 SPARC/SOLARIS 09/27/99 08:44:31 PAGE 3 G e n e r a l A l g e b r a i c M o d e l i n g S y s t e m Model Statistics SOLVE PROTO USING NLP FROM LINE 87 MODEL STATISTICS BLOCKS OF EQUATIONS 10 SINGLE EQUATIONS 10 BLOCKS OF VARIABLES 10 SINGLE VARIABLES 10 NON ZERO ELEMENTS 24 NON LINEAR N-Z 4 DERIVATIVE POOL 5 CONSTANT POOL 0 CODE LENGTH 21 GENERATION TIME = 0.010 SECONDS EXECUTION TIME = 0.010 SECONDS VERID SOL-25-078 GAMS 2.25.078 SPARC/SOLARIS 09/27/99 08:44:31 PAGE 4 G e n e r a l A l g e b r a i c M o d e l i n g S y s t e m Solution Report SOLVE PROTO USING NLP FROM LINE 87 S O L V E S U M M A R Y MODEL PROTO OBJECTIVE Z TYPE NLP DIRECTION MINIMIZE SOLVER MINOS5 FROM LINE 87 **** SOLVER STATUS 1 NORMAL COMPLETION **** MODEL STATUS 2 LOCALLY OPTIMAL **** OBJECTIVE VALUE 1000.0000 RESOURCE USAGE, LIMIT 0.039 1000.000 ITERATION COUNT, LIMIT 6 1000 EVALUATION ERRORS 0 0 M I N O S 5.3 --- SPARC/SOLARIS 5.3.021-019 = = = = = B. A. Murtagh, University of New South Wales and P. E. Gill, W. Murray, M. A. Saunders and M. H. Wright Systems Optimization Laboratory, Stanford University. EXIT -- OPTIMAL SOLUTION FOUND MAJOR ITNS, LIMIT 8 200 FUNOBJ, FUNCON CALLS 0 13 SUPERBASICS 0 INTERPRETER USAGE 0.00 NORM RG / NORM PI 0.000E+00 LOWER LEVEL UPPER MARGINAL ---- EQU INCOME . . . EPS ---- EQU CONSUM . . . EPS ---- EQU LEISURE . . . EPS ---- EQU LABORSUP . . . EPS ---- EQU LABORDEM . . . EPS ---- EQU INTDEM . . . EPS ---- EQU PRICE -1.000 -1.000 -1.000 EPS ---- EQU GOVBUDGET . . . EPS ---- EQU WALCHK . . . EPS ---- EQU DUMMY 1000.000 1000.000 1000.000 1.000 INCOME Household income accounting identity CONSUM Household demand for goods LEISURE Household demand for leisure LABORSUP Household supply of labor LABORDEM Demand for labor by firms INTDEM Intermediate goods demanded by firms PRICE Price from firm's cost function GOVBUDGET Government budget constraint WALCHK Error in Walras Law equation DUMMY Dummy equation for solver LOWER LEVEL UPPER MARGINAL ---- VAR Y -INF 109.186 +INF . ---- VAR W -INF 1.040 +INF . ---- VAR S -INF 5.186 +INF . ---- VAR C -INF 25.932 +INF . GAMS 2.25.078 SPARC/SOLARIS 09/27/99 08:44:31 PAGE 5 G e n e r a l A l g e b r a i c M o d e l i n g S y s t e m Solution Report SOLVE PROTO USING NLP FROM LINE 87 LOWER LEVEL UPPER MARGINAL ---- VAR L -INF 24.934 +INF . ---- VAR J -INF 75.066 +INF . ---- VAR Q -INF 50.866 +INF . ---- VAR X -INF 24.934 +INF . ---- VAR WAL -INF . +INF . ---- VAR Z -INF 1000.000 +INF . Y Income W Wage rate S Subsidy to households C Quantity consumed L Labor supplied J Leisure consumed Q Quantity produced X Intermediate goods demanded WAL Difference between RHS and LHS of walras equation Z Dummy for solver **** REPORT SUMMARY : 0 NONOPT 0 INFEASIBLE 0 UNBOUNDED 0 ERRORS EXECUTION TIME = 0.010 SECONDS VERID SOL-25-078 USER: Campus Site License G950505:1340AR-SOL University of Texas at Austin **** FILE SUMMARY INPUT /home/fac2/wilcoxen/mosaic/cge/proto/proto.gms OUTPUT /home/fac2/wilcoxen/mosaic/cge/proto/proto.lst