Production system and representation of economic sectors - EPPA

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The basic production setting of EPPA is based on the Constant Elasticity of Substitution (CES) function. To account for the empirical observation that income elasticities for the demand of commodities such as food tend to decrease when an economy grows, the Stone-Geary adjustment is applied by recalibrating the subsistence consumption over time to approximate the empirical income elasticity evidence[1].

Alert-warning.png Note: The documentation of EPPA is 'in preparation' and is not yet 'published'!

Model Documentation - EPPA

Corresponding documentation
Previous versions
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Model information
Model link
Institution Massachusetts Institute of Technology (MIT), USA,
Solution concept General equilibrium (closed economy)
Solution method Optimization
  1. Chen, Y.-H. H., S. Paltsev, J. Reilly, J. Morris and M. Babiker (2016). Long-term economic modeling for climate change assessment. Economic Modeling, 52, 867–883.