GAMS/MPSGE - modelling a windfall shock and a sovereign fund

[IdanL]

Hi

I'm modelling an open economy in a static model, based on a SAM data set with 28 aggregated sectors, of  which the energy sectors are expanded.

I would like to introduce an energy source to the economy which was previously unavailable domestically (only imported); it should also be tradable, in the sense that it would be exported. 

And so, my questions are:

1. What types of shock best simulate this?
   I figure it should either be an increased Y output, a fixed RoW price, a fixed RoW Q demand or a fixed domestic Q demand - or any combination of those.

2. How to model a sovereign fund?
   What's the best way to allocate the government taxes over foreign inflows from exports, in a way some/all of it is directed at a dedicated foreign investment fund which yields a share dividend?

3. What closure rules to use?
   As far as I can tell, those could involve either fixing or releasing consumer prices, government budgetary and foreign exchange rate.

Any help on the above would be much appreciated.

Idan

[Rustam Otarov]

Hi Idan,

Can you help on modelling sovereign fund?

I would greatly appreciate that.

Rustam