Trade - COFFEE-TEA

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Alert-warning.png Note: The documentation of COFFEE-TEA is 'under review' and is not yet 'published'!
Model Documentation - COFFEE-TEA
Corresponding documentation
Model information
Institution UFRJ (COPPE UFRJ), Brazil, http://www.ppe.ufrj.br/index.php/en.
Solution concept
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.