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By
Dr. Caesar B Cororaton
Virginia Polytechnic Institute and State University

november 17 and 24, and uecember 1 and 8
1lme: 9:00 am Lo 1:00 M
8oom 103, Lncarnaclon Pall, u School of Lconomlcs

Topics:

1. Partial equilibrium simulation model

Partial equilibrium simulation models are usually
specified using an expenditure system based on constant
elasticity of substitution (CES) function. However, this
specification doesnt work well in cases where the
consumption of a particular product is zero at a finite price. The effects of relaxing an import ban,
for example, cannot be analyzed without introducing ad hoc assumptions on the CES share
parameters. In this lecture, the consumer preferences for differentiated products are represented
by a trans-log unit expenditure function, whose derived demand functions are linear in prices.

The lecture focuses on model specification and model programming in GAMS. The application
used in the discussion is the case study on the US import ban on fresh beef from South America
because of Foot-and-Mouth Disease (FMD) concerns.


2. Basic Computable General Equilibrium (CGE) Model

In this lecture, a specification of a basic CGE model is discussed. The model is programmed in
GAMS. The application used in the discussion is the case of the Philippine import quota on rice.
In the model, import quota is modeled as a mixed complementarity problem (MCP).

7"#),,"*/"/8

For advanced undergraduate students in economics, graduate students in economics or
agricultural economics (planning to use economic modeling for policy analysis), and for
government technical staff assigned to do policy analysis.

7"9%-&","*$'8

1. Training in economics, preferably at least an undergraduate degree in economics, agricultural
economics, or related discipline and preferably with current experience in economic policy
analysis in the government.
2. Laptop.


ur. Caesar 8. CororaLon ls a 8esearch lellow
aL Lhe vlrglnla olyLechnlc lnsLlLuLe and SLaLe
unlverslLy. 8efore Lhls, he worked as a
8esearch lellow aL Lhe lnLernaLlonal lood
ollcy 8esearch lnsLlLuLe. Slnce hls
appolnLmenL aL Lhe hlllpplne lnsLlLuLe for
uevelopmenL SLudles ln Lhe 1990s, ur.
CororaLon has conslsLenLly been one of Lhe
counLry's mosL acLlve economlc pollcy
modeler and has publlshed ln lnLernaLlonal
economlc [ournals. Pe's vlslLlng Lhe u
School of Lconomlcs Lo glve Lhese LecLures
on Lconomlc Modellng for ollcy Analysls.
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