Trade - COFFEE-TEA

From IAMC-Documentation
Jump to: navigation, search
Model Documentation - COFFEE-TEA
Corresponding documentation
Model information
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.
Anticipation


In the TEA model, international trade follows an Armington's aggregation1, in which a composite CES function differentiate consumer's preferences between imported and domestic goods.

In the COFFEE model, international trade of energy and agriculture commodities is explicitely represented. Partial equilibrium is reached in a minimun cost basis, whereas trade between regions is part of the solution.

References

  1. ^  | | |  Paul S Armington (1969). A theory of demand for products distinguished by place of production. Staff Papers, 16 (1), 159-178.