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.