Dear all,

I am working on the CGE model. I don’t finish the whole model yet. Up to this stage, I have written the equations and I fix all the variables to check all the equations. I encounter two questions:

(1) some equation showed “infes”, but the value is very small. For example, 0.002 or 1*E-5. Can I ignore it? The model will work?

(2) All the equations seem okay, except for the yield of government. I am trying to solve the problem, but in vain.:

YG=e=sum[a,rateindir(a)*PVA(a)*QVA(a)+PINTA(a)*QINTA(a))]+sum(c,tm(c)*pwm(c) QM(c)EXR)+tihYH+tiEntYENT+transfrGRow0*EXR;

the result is:

… 872*YENT + YG =E= 0 ;

(LHS = 116770.535426369, INFES = 116770.535426369 ****)

On the equation above, I set:

QVA(a): value added , such as labor

QINTA(a): intermediate input

rateindir(a): is indirect tax, I assume it is some percentage of value added plus intermediate.

second term is importing tax: sum(c,tm(c)*pwm(c)*QM(c)*EXR)

third term is direct tax of household

forth term is direct tax of enterprise

fifth term is transfer form Rest of World

I try to replace the different expression way of each term many days, but the problem is still existing.

I appreciate any help.

Thanks and regards,

Douglas

HSRTWN20201211.gms (25.1 KB)

samjuly20201211.xlsx (44.9 KB)