How To Change a Macro Closure

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1. Flags and Macro Closures

This how-to guide explains how to change the three macro closures in the UNI-CGE model: (1) saving-investment, (2) government savings (fiscal balance) and the (3) capital account/trade balance.

To change a closure, go to the closure section of the UNI-CGE model by typing CTRL + F and searching for the term “Selecting Closures.”

Macro closure choices in the UNI-CGE model are defined using “flags.” The flags are numbers that correspond to definitions of different closure options. The default macro closure choices in the UNI CGE model are shown in Figure 1.

Figure 1. Default macro closures in UNI-CGE model

To change a macro closure, change the numbers of the flag to represent the closure that you want to use. Table 1 provides a brief summary of the options for each macro closure in the model. You can learn more about macro closures in the lesson on macro closure in the Macro/General Equilibrium module.

Table 1. Summary of macro closure options in the UNI-CGE model

 

Flag  number

Fixed variable

Variable that adjusts

Savings-investment 

 

SICLOS = 1

Household savings rate

Investment quantities

SICLOS = 2

Investment quantities

Household savings rate

Government Savings

GOVCLOS = 1

Quantities of government purchases

Budget surplus/deficit

GOVCLOS = 2

Budget surplus/deficit

Quantities of government purchases

GOVCLOS = 3

Quantities of gov’t. purchases and budget balance

Income tax rate on households

Foreign Savings (trade balance)

ROWCLOS = 1

Exchange rate

Capital account/trade balance

ROWCLOS = 2

Capital account/trade balance

Exchange rate


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Last modified: Saturday, 7 September 2024, 3:14 PM