Course CGE1. Introduction to CGE Modelling with GAMS: Basic (Simple) Model

2 days (Between 10.00-16.45)
All times are local Istanbul time (UTC/GMT+3)

Course Program

Day 1

10.00-10.15: Welcoming Remarks
10.15-11.00: Introduction to GAMS Language
 • Example of Utility Maximization in GAMS
 • A Basic Optimization Model: Simple Coding
11.00-11.15: Coffee Break
11.15-12.00: Set Operator in GAMS
 • A Basic Optimization Model: Advanced Coding
12.00-13.15: Lunch
13.15-14.00: Constraints and the Concept of Shadow Price
 • Applications with GAMS
14.00-14.15: Coffee Break
14.15-15.00: A Simple General Equilibrium Model:
2 Firms, 2 Goods, 1 Household
 • Household Behavior: Marshallian Demand Equations
15.00-15.15: Coffee Break
15.15-16.00: Writing the Model in GAMS

16.00-16.15: Coffee Break

16.15-16.45: Interactive Consulting

Day 2

10.00-10.15: Introduction and Review

10.15-11.00: Firm Behavior: Capital and Labor Demand Equations
 • Applications with GAMS
11.00-11.15: Coffee Break
11.15-12.00: Market Clearing Conditions and Walras' Law
 • Applications with GAMS
12.00-13.15: Lunch
13.15-14.00: Concept of Calibration
 • Applications with GAMS

14.00-14.15: Coffee Break
14.15-15.00: Writing the First CGE Code in GAMS
15.00-15.15: Coffee Break

15.15-16.00: Applications with First CGE Code

16.00-16.15: Coffee Break

16.15-16.45: Interactive Consulting

This training is designed for those who have no prior knowledge of GAMS and are new to general equilibrium theory and modeling. Theoretical knowledge will be provided alongside GAMS applications: our course combines theoretical concepts and hands-on computer work including an introduction to GAMS software.

Participants will be provided with an official GAMS Release 47.0.2 license (valid for 1 week).

Since CGE modeling is a difficult topic, we designed our training based on a book: "Textbook of Computable General Equilibrium Modeling – Programming and Simulations" by Nobuhiro Hosoe, Kenji Gasawa and Hideo Hashimoto (2015). This textbook is written for beginners and easy to understand. It explains the basic features of CGE modelling.

Amazon link

In this course we develop the simplest possible CGE model (Simple Model), with one household, two firms, two goods and two factors of production. Since almost all CGE models used for empirical policy analysis are extensions of this simple CGE model, it is crucial to understand how this model is constructed.

The content of this course is as follows: introduction to GAMS Language, example of utility maximization in GAMS, a basic optimization model: simple coding, set operator in GAMS, basic optimization model: advanced coding with set operator, constraints and the concept of shadow price, a simple general equilibrium model: 2 Firms, 2 Goods, 1 Household, household behavior: derivation od marshallian demand equations and writing the model in GAMS, firm Behavior: derivation of capital and labor demand equations and application with GAMS, market Clearing Conditions and Walras' Law, concept of "calibration", writing the first CGE Code in GAMS (Simple CGE Model), applications with First CGE Code (Simple CGE Model).

Note that at the end of the training, 10-minute interactive-consulting sessions will be provided for students who are interested.