Capital and labour markets - EPPA

Capital markets are region-specific. The demand for capital comes from each sector's production activity, while the supply of capital comes from investment and the depreciated capital from the previous period. In each region, there is a capital market for the malleable capital, which moves freely across sectors to equalize the rate of return of capital. For the vintage (nonmalleable) capital it is locked into a sector (i.e., sector-specific) and will not be able to be traded in a capital market to search for a higher rate of return in other sectors. In EPPA, labor markets are also region-specific. Labor supply comes from the labor endowment, and labor demand is from each sector's production activity. In the standard EPPA setting, labor is homogenous and can move across sectors freely to equalize the wage rate.

Note: The documentation of EPPA is 'in preparation' and is not yet 'published'!

Model Documentation - EPPA
Model scope and methods - EPPA Model concept, solver and details - EPPA Temporal dimension - EPPA Spatial dimension - EPPA Policy - EPPA Socio-economic drivers - EPPA Population - EPPA Economic activity - EPPA Macro-economy - EPPA Production system and representation of economic sectors - EPPA Capital and labour markets - EPPA Monetary instruments - EPPA Trade - EPPA Technological change - EPPA Energy - EPPA Energy resource endowments - EPPA Fossil energy resources - EPPA Uranium and other fissile resources - EPPA Bioenergy - EPPA Non-biomass renewables - EPPA Energy conversion - EPPA Electricity - EPPA Heat - EPPA Gaseous fuels - EPPA Liquid fuels - EPPA Solid fuels - EPPA Grid, pipelines and other infrastructure - EPPA Energy end-use - EPPA Transport - EPPA Residential and commercial sectors - EPPA Industrial sector - EPPA Other end-use - EPPA Energy demand - EPPA Technological change in energy - EPPA Land-use - EPPA Agriculture - EPPA Forestry - EPPA Land-use change - EPPA Bioenergy land-use - EPPA Other land-use - EPPA Agricultural demand - EPPA Technological change in land-use - EPPA Emissions - EPPA GHGs - EPPA Pollutants and non-GHG forcing agents - EPPA Carbon dioxide removal (CDR) options - EPPA Climate - EPPA Modelling of climate indicators - EPPA Climate damages, temperature changes - EPPA Non-climate sustainability dimension - EPPA Air pollution and health - EPPA Water - EPPA Other materials - EPPA Other sustainability dimensions - EPPA Appendices - EPPA Mathematical model description - EPPA Data - EPPA References - EPPA
Corresponding documentation
AIM-Hub BLUES C3IAM COFFEE-TEA DNE21+ GEM-E3 GRACE IMACLIM PROMETHEUS
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Model information
Model link	https://globalchange.mit.edu/research/research-tools/eppa
Institution	Massachusetts Institute of Technology (MIT), USA, https://globalchange.mit.edu/.
Solution concept	General equilibrium (closed economy)
Solution method	Optimization
Anticipation