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SALTER: A General Equilibrium Model of the World Economy, vol. 1, Model Structure, Database and Parameters

Salter Working Paper

SALTER: A General Equilibrium Model of the World Economy, vol. 1, Model Structure, Database and Parameters documents the theoretical structure of the SALTER model, its database and parameters.

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Contents

Preface

Acknowledgements

Wilfred Edward Graham Salter

1   The SALTER model structure
Regions and commodities
The economic structure of the SALTER model
Economic environments
Solving the linear system of equations
Appendix 1A   Variables and parameters in the SALTER model

2   The benchmark data set
Construction of the database
Relative sizes and characteristics of modelled regions
Protection database
Appendix 2A   Updating regional and trade databases

3   Parameter settings
Elasticities of substitution among primary factors
Trade elasticities in the SALTER model
Substitition between domestic and imported commodities
The elasticity of substitution among imports from different sources
Consumer demand parameters
The elasticity of labour supply
Appendix 3A   Consumer demand elasticities

References

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