MIRAGRODEP-AEZ is a recursive dynamic multi-region, multi-sector Computable General Equilibrium (CGE) model based on MIRAGRODEP which in turn is based on MIRAGE (Modelling International Relations Under Applied General Equilibrium) with Agro-ecolog

The study of market integration offers a powerful tool for understanding the relationships between geographically distant markets, for analyzing the impact of liberalization policies and for diagnosing the transmission of price shocks.

Since Jan Tinbergen’s original formulation (Tinbergen 1962), gravity has long been one of the most successful empirical models in economics.

Partial equilibrium (PE) analysis is commonly used to analyze the effects of policies, in particular trade policies, on price and welfare in the market that is directly affected.

This technical note presents a review of the functional forms commonly used to represent demand and production in Computable General Equilibrium (CGE) models. The general properties of demand and production functions are described.

In this document we give several examples of hands-on estimation to familiarize yourself with the gravity equation methodological choices highlighted in the literature review.

The PEP model is an extension of the widely used EXTER model and is the result of collaboration between Bernard Decaluwé, André Lemelin, Hélène Maisonnave and Véronique Robichaud from the PEP network.