Characterizing supply-side drivers of structural change in the construction of economic baseline projections

A recent review of common modelling practices conducted during the Workshop “Shaping long-term baselines with Computable General Equilibrium (CGE) models” held at OECD in January 2018 showed that models include different assumptions on changes to the production function along their dynamic baselines...

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Main Authors: Chateau, Jean, Corong, Erwin, Lanzi, Eliza, Carrico, Caitlyn, Fouré, Jean, Laborde Debucquet, David
Format: Journal Article
Language:Inglés
Published: Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University 2020
Subjects:
Online Access:https://hdl.handle.net/10568/142711
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author Chateau, Jean
Corong, Erwin
Lanzi, Eliza
Carrico, Caitlyn
Fouré, Jean
Laborde Debucquet, David
author_browse Carrico, Caitlyn
Chateau, Jean
Corong, Erwin
Fouré, Jean
Laborde Debucquet, David
Lanzi, Eliza
author_facet Chateau, Jean
Corong, Erwin
Lanzi, Eliza
Carrico, Caitlyn
Fouré, Jean
Laborde Debucquet, David
author_sort Chateau, Jean
collection Repository of Agricultural Research Outputs (CGSpace)
description A recent review of common modelling practices conducted during the Workshop “Shaping long-term baselines with Computable General Equilibrium (CGE) models” held at OECD in January 2018 showed that models include different assumptions on changes to the production function along their dynamic baselines. These changes imply shifts in sectoral compositions for the projected economies (i.e. structural change). This paper reviews the assumptions made by 24 modeling teams about supply-side drivers of structural change: primary factor efficiency and changes in input-output structures of the production function over time. We critically review various methodologies, identifying state-of-the-art practices, and we propose simple guidelines, particularly focusing on consistency between data sources and models. The review highlights that most models take into account structural change to some extent. However, more effort is needed in modelling projected changes in input-output structures. Furthermore, this review is helpful for understanding the functioning of dynamic CGE models and in assisting dynamic CGE modelers in building their own baselines.
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language Inglés
publishDate 2020
publishDateRange 2020
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publisher Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University
publisherStr Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University
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spelling CGSpace1427112025-12-08T10:29:22Z Characterizing supply-side drivers of structural change in the construction of economic baseline projections Chateau, Jean Corong, Erwin Lanzi, Eliza Carrico, Caitlyn Fouré, Jean Laborde Debucquet, David structural adjustment models forecasting modelling input output analysis computable general equilibrium models gross national product A recent review of common modelling practices conducted during the Workshop “Shaping long-term baselines with Computable General Equilibrium (CGE) models” held at OECD in January 2018 showed that models include different assumptions on changes to the production function along their dynamic baselines. These changes imply shifts in sectoral compositions for the projected economies (i.e. structural change). This paper reviews the assumptions made by 24 modeling teams about supply-side drivers of structural change: primary factor efficiency and changes in input-output structures of the production function over time. We critically review various methodologies, identifying state-of-the-art practices, and we propose simple guidelines, particularly focusing on consistency between data sources and models. The review highlights that most models take into account structural change to some extent. However, more effort is needed in modelling projected changes in input-output structures. Furthermore, this review is helpful for understanding the functioning of dynamic CGE models and in assisting dynamic CGE modelers in building their own baselines. 2020-10-01 2024-05-22T12:10:55Z 2024-05-22T12:10:55Z Journal Article https://hdl.handle.net/10568/142711 en Open Access Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University Chateau, Jean; Corong, Erwin; Lanzi, Eliza; Carrico, Caitlyn; Fouré, Jean; and Laborde Debucquet, David. 2020. Characterizing supply-side drivers of structural change in the construction of economic baseline projections. Journal of Global Economic Analysis 5(1): 109-161. https://doi.org/10.21642/JGEA.050104AF
spellingShingle structural adjustment
models
forecasting
modelling
input output analysis
computable general equilibrium models
gross national product
Chateau, Jean
Corong, Erwin
Lanzi, Eliza
Carrico, Caitlyn
Fouré, Jean
Laborde Debucquet, David
Characterizing supply-side drivers of structural change in the construction of economic baseline projections
title Characterizing supply-side drivers of structural change in the construction of economic baseline projections
title_full Characterizing supply-side drivers of structural change in the construction of economic baseline projections
title_fullStr Characterizing supply-side drivers of structural change in the construction of economic baseline projections
title_full_unstemmed Characterizing supply-side drivers of structural change in the construction of economic baseline projections
title_short Characterizing supply-side drivers of structural change in the construction of economic baseline projections
title_sort characterizing supply side drivers of structural change in the construction of economic baseline projections
topic structural adjustment
models
forecasting
modelling
input output analysis
computable general equilibrium models
gross national product
url https://hdl.handle.net/10568/142711
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