Manual%20on%20Computed%20General%20Balance%20Models%20%28CGBM%29%20for%20LAC%20Economies%20with%20Emphasis%20on%20the%20Economic%20Analysis%20of%20Climate%20Change

Technical Notes

Manual on Computed General Balance Models (CGBM) for LAC Economies with Emphasis on the Economic Analysis of Climate Change


CODE: IDB-TN-445
AUTHOR(s): Chisari, Omar , Maquieyra, Javier , Miller, Sebastian
PUBLISHED: September 2012
LANGUAGE: Spanish
RELATED TOPICS: Finance
DOWNLOAD FILE IN: Spanish

Abstract:

This paper presents a recursive, dynamic CGBM to evaluate the impact of climate change on six six Latin American and Caribbean economies (Argentina, Brazil, Chile, El Salvador, Jamaica and Peru). The medium-sized model considers the relative prices mechanism and structural economic changes, as well as the impact of climate change on revenue levels and policies. Policies and conditional regulations automatically activated by the frequency or magnitude of shocks are also considered. The results demonstrate the importance of considering not only scale effects (activity level) but also composition effects (structural changes) in order to understand the final impact of policies. The self-contained manual presents an in-depth description of the construction process of the social accounting matrix, the GAMS/MPSGE interface representation of the model, and the reading of results in macroeconomic, distributional and environmental indicators. Practical examples are also presented.

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