Socio-economic drivers - EPPA: Difference between revisions
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The dynamics of the model are determined by both exogenous and endogenous factors. Exogenous factors include projections for labor endowment growth, factor-augmented productivity growth, energy productivity growth, and natural resource assets. For each region, we assume that the labor endowment increases proportionally to population growth. We then have the option to specify differential productivity growth for labor, capital and land. Since expectations of future economic growth are often in terms of GDP rather than underlying factors such as labor, land, capital, energy productivity, or resource availabilities, we have included a model feature that automatically calibrates an additional Hick’s neutral adjustment on top of any biased growth to match a pre-specified GDP growth rate.<ref> | The dynamics of the model are determined by both exogenous and endogenous factors. Exogenous factors include projections for labor endowment growth, factor-augmented productivity growth, energy productivity growth, and natural resource assets. For each region, we assume that the labor endowment increases proportionally to population growth. We then have the option to specify differential productivity growth for labor, capital and land. Since expectations of future economic growth are often in terms of GDP rather than underlying factors such as labor, land, capital, energy productivity, or resource availabilities, we have included a model feature that automatically calibrates an additional Hick’s neutral adjustment on top of any biased growth to match a pre-specified GDP growth rate.<ref>Chen, Y.-H. H., S. Paltsev, J. Reilly, J. Morris and M. Babiker (2016). Long-term economic modeling for climate change assessment. Economic Modeling, 52, 867–883.</ref> | ||
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Revision as of 21:30, 7 June 2022
The dynamics of the model are determined by both exogenous and endogenous factors. Exogenous factors include projections for labor endowment growth, factor-augmented productivity growth, energy productivity growth, and natural resource assets. For each region, we assume that the labor endowment increases proportionally to population growth. We then have the option to specify differential productivity growth for labor, capital and land. Since expectations of future economic growth are often in terms of GDP rather than underlying factors such as labor, land, capital, energy productivity, or resource availabilities, we have included a model feature that automatically calibrates an additional Hick’s neutral adjustment on top of any biased growth to match a pre-specified GDP growth rate.[1]
Note: The documentation of EPPA is 'in preparation' and is not yet 'published'!| Corresponding documentation | |
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| Previous versions | |
| No previous version available | |
| Model information | |
| Model link | |
| Institution | Massachusetts Institute of Technology (MIT), USA, https://globalchange.mit.edu/. |
| Solution concept | General equilibrium (closed economy) |
| Solution method | Optimization |
| Anticipation | |
- ↑ Chen, Y.-H. H., S. Paltsev, J. Reilly, J. Morris and M. Babiker (2016). Long-term economic modeling for climate change assessment. Economic Modeling, 52, 867–883.