Macro-economy - COFFEE-TEA
|Institution||COPPE/UFRJ (Cenergia), Brazil, http://www.cenergialab.coppe.ufrj.br/.|
|Solution concept||General equilibrium (closed economy)|
|Solution method||The COFFEE model is solved through Linear Programming (LP). The TEA model is formulated as a mixed complementary problem (MCP) and is solved through Mathematical Programming System for General Equilibrium -- MPSGE within GAMS using the PATH solver.|
The TEA model provides demand projections for the COFFEE model. The main economic drivers for the TEA model are population and GDP growth, which are exogenous and currently derived from the SSP database. When run as a linked application, economic consistency of the COFFEE model is guaranteed by the information from the TEA model. When run as a stand-alone application, the macroeconomic consistency of the COFFEE model is guaranteed by the implementation of exogenous macroeconomic drivers that provide the demand growth over time, such as the SSP database.