Introduction to the Database in a CGE Model (2 minute read)

The database of a CGE model has two components. One is the Social Accounting Matrix, or SAM.  The SAM describes all the transactions in an economy at a point in time, usually a year. It displays these data in a logical format, with rows and columns showing how transactions among agents and other accounts link all parts of the economy in a circular flow of income and spending.

The second part of a CGE database is the set of elasticity parameters that describe the responsiveness of producers and consumers to changes in their income or prices. 

In the Database topic, you will learn about SAMs and their logical format. And, you will learn about the types of elasticities used in the model and the economic decision to which each elasticity is applied.

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Last modified: Thursday, 11 April 2024, 8:22 PM