Calibration of ces functions for real-world multisectoral modeling

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21 Citations (Scopus)

Abstract

We show how to calibrate CES production and utility functions when indirect taxation affecting inputs and consumption is present. These calibrated functions can then be used in computable general equilibrium models. Taxation modifies the standard calibration procedures since any taxed good has two associated prices and a choice of reference value units has to be made. We also provide an example of computer code to solve the calibration of CES utilities under two alternate normalizations.
Original languageEnglish
Pages (from-to)45-58
JournalEconomic Systems Research
Volume21
Issue number1
DOIs
Publication statusPublished - 17 Jul 2009

Keywords

  • Calibration
  • CES utility and cost functions
  • CGE modeling

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