Working Paper 006: ImpactECON Global Supply Chain Model
By Terrie Walmsley and Peter Minor
Publishing Date: August 2016
The ImpactECON Global Supply Chain (IESC) model is based on the GTAP model (Hertel and Tsigas, 1997) and solved in GEMPACK (Harrison and Pearson, 1996). The GTAP model is a relatively standard global computable general equilibrium (CGE) model. The main difference between the IESC model and the GTAP model is the treatment of imports. The IESC model tracks the importing agent and exporting country of each imported commodity, along with differential tariff rates by agent and source. By capturing imports and tariffs by commodity, agent, source and destination, the IESC model provides further flexibility in examining the impact of various policies on welfare, production, trade and employment.
The aim of this paper is to document the changes made to the GTAP model to incorporate global supply chains. The paper provides an outline of the model, as well as the new auxiliary programs available for the decomposition of welfare.
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