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

Skip to first unread message


May 10, 2015, 4:33:11 PM5/10/15

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.


Rustam Otarov

Apr 27, 2016, 2:23:38 AM4/27/16
to gamsworld
Hi Idan,

Can you help on modelling sovereign fund?
I would greatly appreciate that.

Reply all
Reply to author
0 new messages