$TITLE: Model M63: Two Country Large-Group Monopolistic Competition * uses MCP $ontext YI YJ XMI XMJ NMI NMJ WI WJ CONI CONJ EHTI ENTJ PYI 100 -100 PYJ 100 -100 PXI 100 -50 -50 PXJ 100 -50 -50 FCI 20 -20 FCJ 20 -20 ZI -40 -48 -12 100 ZJ -40 -48 -12 100 WI -60 -32 -8 100 WJ -60 -32 -8 100 UTILI 200 -200 UTILJ 200 -200 MKI -10 -10 10 10 MKJ -10 -10 10 10 $offtext PARAMETERS EP EY TC FC ENDOWIS ENDOWIL ENDOWJS ENDOWJL MODELSTAT REALWI REALWJ REALZI REALZJ; EP = 5; EY = 3; TC = 1.; FC = 20; ENDOWIS = 100; ENDOWIL = 100; ENDOWJS = 100; ENDOWJL = 100; POSITIVE VARIABLES WFI WFJ XII XIJ XJJ XJI YI YJ NI NJ PI PJ PY PUI PUJ EI EJ ZI WI ZJ WJ MI MJ; EQUATIONS WELFAREI WELFAREJ DXII DXJI DXJJ DXIJ DY ZEROPI ZEROPJ PRICEI PRICEJ PRICYI PRICYJ PRICEUI PRICEUJ DWJ INDEXI INDEXJ EXPI EXPJ SKLABI UNLABI SKLABJ UNLABJ; WELFAREI.. 200*WFI =E= ((2**(1/(1-EP))*1.25)**0.5)*MI/(1.025*PUI); WELFAREJ.. 200*WFJ =E= ((2**(1/(1-EP))*1.25)**0.5)*MJ/(1.025*PUJ); DXII.. XII*40 =E= PI**(-EP)*(EI**(EP-1))*MI/2; DXJI.. XJI*40/TC =E= (PJ*TC)**(-EP)*(EI**(EP-1))*MI/2; DXJJ.. XJJ*40 =E= PJ**(-EP)*(EJ**(EP-1))*MJ/2; DXIJ.. XIJ*40/TC =E= (PI*TC)**(-EP)*(EJ**(EP-1))*MJ/2; DY.. YI*100 + YJ*100 =E= MI/(2*PY) + MJ/(2*PY); ZEROPI.. FC*(EP-1) =G= XII*40 + XIJ*40; ZEROPJ.. FC*(EP-1) =G= XJJ*40 + XJI*40; PRICEI.. (WI**0.4)*(ZI**0.6) =G= PI*(1-1/EP); PRICEJ.. (WJ**0.4)*(ZJ**0.6) =G= PJ*(1-1/EP); PRICYI.. (WI**0.60)*(ZI**0.40) =G= PY; PRICYJ.. (WJ**0.60)*(ZJ**0.40) =G= PY; PRICEUI.. (EI**0.5)*(PY**0.5)/1.025 =G= PUI; PRICEUJ.. (EJ**0.5)*(PY**0.5)/1.025 =G= PUJ; INDEXI.. EI =E= (NI*PI**(1-EP) + NJ*(PJ*TC)**(1-EP))**(1/(1-EP)); INDEXJ.. EJ =E= (NI*(PI*TC)**(1-EP) + NJ*PJ**(1-EP))**(1/(1-EP)); EXPI.. MI =E= ZI*ENDOWIS + WI*ENDOWIL; EXPJ.. MJ =E= ZJ*ENDOWJS + WJ*ENDOWJL; SKLABI.. ENDOWIS =E= 0.40*(WI**0.60)*(ZI**(0.40-1))*YI*100 + 0.6*(WI**0.4)*(ZI**(0.6-1))*NI*((XII+XIJ)*40 + FC); UNLABI.. ENDOWIL =E= 0.60*(WI**(0.60-1))*(ZI**0.40)*YI*100 + 0.4*(WI**(0.4-1))*(ZI**0.6)*NI*((XII+XIJ)*40 + FC); SKLABJ.. ENDOWJS =E= 0.40*(WJ**0.60)*(ZJ**(0.40-1))*YJ*100 + 0.6*(WJ**0.4)*(ZJ**(0.6-1))*NJ*((XJJ+XJI)*40 + FC); UNLABJ.. ENDOWJL =E= 0.60*(WJ**(0.60-1))*(ZJ**0.40)*YJ*100 + 0.4*(WJ**(0.4-1))*(ZJ**0.6)*NJ*((XJJ+XJI)*40 + FC); MODEL M63 / WELFAREI.WFI, WELFAREJ.WFJ, PRICYI.YI, PRICYJ.YJ, DXII.XII, DXJI.XJI, DXJJ.XJJ, DXIJ.XIJ, DY.PY, ZEROPI.NI, ZEROPJ.NJ, PRICEI.PI, PRICEJ.PJ, PRICEUI.PUI, PRICEUJ.PUJ, SKLABI.ZI, SKLABJ.ZJ, UNLABI.WI, UNLABJ.WJ, INDEXI.EI, INDEXJ.EJ, EXPI.MI, EXPJ.MJ/; OPTION MCP=MILES; *OPTION SOLPRINT=OFF; OPTION LIMROW=0; OPTION LIMCOL=0; $OFFSYMLIST OFFSYMXREF OFFUELLIST OFFUELXREF WFI.L = 1; WFJ.L = 1; PUI.L = 1.25**0.5; PUJ.L = 1.25**0.5; EI.L = 1; EJ.L = 1; MI.L = 200; MJ.L = 200; XII.L = 1; XIJ.L = 1; XJJ.L = 1; XJI.L = 1; YI.L = 1; YJ.L = 1; NI.L = 1; NJ.L = 1; PI.L = 1.25; PJ.L = 1.25; PY.L = 1; ZI.L = 1; WI.L = 1; ZJ.L = 1; WJ.L = 1; PY.FX = 1; TC = 1.; SOLVE M63 USING MCP; MODELSTAT = M63.MODELSTAT - 1.; ENDOWIS = 200; ENDOWIL = 200; ENDOWJS = 200; ENDOWJL = 200; SOLVE M63 USING MCP; TC = 1.15; ENDOWIS = 100; ENDOWIL = 100; ENDOWJS = 100; ENDOWJL = 100; SOLVE M63 USING MCP; TC = 1.0; ENDOWIS = 150; ENDOWIL = 150; ENDOWJS = 50; ENDOWJL = 50; SOLVE M63 USING MCP; TC = 1.15; ENDOWIS = 150; ENDOWIL = 150; ENDOWJS = 50; ENDOWJL = 50; SOLVE M63 USING MCP; REALWI = WI.L/PUI.L; REALWJ = WJ.L/PUJ.L; REALZI = ZI.L/PUI.L; REALZJ = ZJ.L/PUJ.L; DISPLAY REALWI, REALWJ, REALZI, REALZJ; ENDOWIS = 120; ENDOWIL = 100; ENDOWJS = 80; ENDOWJL = 100; SOLVE M63 USING MCP; REALWI = WI.L/PUI.L; REALWJ = WJ.L/PUJ.L; REALZI = ZI.L/PUI.L; REALZJ = ZJ.L/PUJ.L; DISPLAY REALWI, REALWJ, REALZI, REALZJ;