Trade - COFFEE-TEA
|Model Documentation - COFFEE-TEA|
|Institution|| UFRJ (COPPE UFRJ), Brazil, http://www.ppe.ufrj.br/index.php/en.|
main users: Roberto Schaeffer; Alexandre Szklo; Andre F. P. Lucena; Angelo C. Gurgel; Pedro R. R. Rochedo; Mariana Imperio; Bruno S. L. Cunha; Rafael Garaffa
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.
- Paul S Armington (1969). A theory of demand for products distinguished by place of production. Staff Papers, 16 (1), 159--178. |