*
* PROTO.GMS 1.01
* Oct 92 (PJW)
*
* GAMS program to compute a base case solution for a small
* prototype general equilibrium model.
*
*
* Turn off the symbol table and symbol listing. Also turn off the
* equation and variable listing produced by the solve statement.
* Generally this should only be done after a model is working properly.
*
$OFFSYMXREF OFFSYMLIST
OPTION LIMROW=0, LIMCOL=0;
*
* These are the model's parameters:
*
SCALAR a Utility function parameter / 0.285 /;
SCALAR b Production function parameter / 2.040 /;
*
* These are exogenous variables:
*
SCALAR h Total endowment of hours / 100.0 /;
SCALAR t Initial tax rate / 0.200 /;
SCALAR p Numeraire price / 1.000 /;
*
* These are the endogenous variables:
*
VARIABLES
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 ;
*
* Here are the equations:
*
EQUATIONS
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 ;
income.. y =e= w*h + s ;
consum.. p*(1+t)*c =e= a*y ;
leisure.. w*j =e= (1-a)*y ;
laborsup.. w*l =e= a*y - s ;
labordem.. l =e= q/b ;
intdem.. x =e= q/b ;
price.. p =e= w/(b-1) ;
govbudget.. t*p*c =e= s ;
walchk.. wal =e= q-x-c ;
dummy.. z =e= 1000 ;
*
* The model consists of all of the equations
*
MODEL proto /ALL/;
*
* Solve it using Nonlinear programming. Must give the
* algorithm something to minimize so use a dummy variable.
*
SOLVE proto USING NLP MINIMIZING z;