Hello,
I’m currently building a simplified CGE model. My primary goal is to ensure that the model is homogeneous before proceeding. However, the homogeneity test where I increase all exogenous variables by 10% does not lead to an equivalent increase in all endogenous variables. This shows that the model is not homogeneous. Could you help me identify what’s going wrong? Perhaps some relationships are not consistent with theory. I appreciate your help in advance. I’ve attached the GAMS code and the SAM. This matrix is fictional, so we can adjust it if necessary.