$TITLE Model M28GMS: 2x2 Economy with Two Household Types $ONTEXT Two household: differ in preferences and in endowments Production Sectors Consumers Markets | X Y WA WB | A B ---------------------------------------------------------- PX | 100 -40 -60 | PY | 100 -60 -40 | PWA | 100 | -100 PWB | 100 | -100 PL | -25 -75 | 90 10 PK | -75 -25 | 10 90 ---------------------------------------------------------- $OFFTEXT PARAMETERS TX; TX = 0; $ONTEXT $MODEL:M28 $SECTORS: X ! Activity level for sector X Y ! Activity level for sector Y WA ! Welfare index for consumer A WB ! Welfare index for consumer B $COMMODITIES: PX ! Price index for commodity X PY ! Price index for commodity Y PL ! Price index for primary factor L PK ! Price index for primary factor K PWA ! Price index for consumer A welfare (expenditure function) PWB ! Price index for consumer B welfare (expenditure function) $CONSUMERS: CONSA ! Income level for consumer A CONSB ! Income level for consumer B * More than one tax may be levied on a single transaction with * revenues acruing to different agents. As specified here, the * ad-valorem tax rate on inputs to sector X equals 2*TX. Half * of the tax revenue acrues to A and half to B. $PROD:X s:1 O:PX Q:100 I:PL Q: 25 A:CONSA T:TX A:CONSB T:TX I:PK Q: 75 A:CONSA T:TX A:CONSB T:TX $PROD:Y s:1 O:PY Q:100 I:PL Q: 75 I:PK Q: 25 $PROD:WA s:1 O:PWA Q:100 I:PX Q:40 I:PY Q:60 $PROD:WB s:1 O:PWB Q:100 I:PX Q:60 I:PY Q:40 $DEMAND:CONSA D:PWA Q:100 E:PL Q: 90 E:PK Q: 10 $DEMAND:CONSB D:PWB Q:100 E:PL Q: 10 E:PK Q: 90 $OFFTEXT $SYSINCLUDE mpsgeset M28 PL.FX = 1; $INCLUDE M28.GEN SOLVE M28 USING MCP; * Solve a counterfactual: TX = 0.25; $INCLUDE M28.GEN SOLVE M28 USING MCP;