A STATIC WORLD POLICY SIMULATION (SWOPSIM) MODELING FRAMEWORK

Abstract

This report documents a framework that can be used to create static world world Eolicy simulation (SWOPSIM) models. The framework consists of a simple economic structure which includes summary policy measures plus a set of computer programs which generates the models from a master model spreadsheet. The models created by the framework reside in spreadsheets and are modified and solved as spreadsheets. SWOPSIM models are designed to simulate the effect of changes in policies on production, consumption, and trade. The framework allows the construction of static single product as well as multiproduct world models. Economic linkages across products can occur via cross price relationships and "input-output" product specification while linkages across countries and regions take place through domestic-international price equations and world trade. The use of the SWOPSIM framework is illustrated with a simple world agricultural trade model.

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