Applied General Equilibrium Modelling ANNARES, STAGE and R23 Models

© Scott McDonald


STAGE 1 is a ‘standard’ single country CGE model designed for use in the Single country and Recursive Dynamic (single country) training courses.

It is a development of the PROVIDE model that is calibrated using data derived from a country specific SAM and various satellite accounts. The underlying approach to single country CGE modelling derives from the SAM approach to national accounting and the SAM approach to modelling; hence the model is explicitly consistent with the SNA.

Model Features

The price system is built on basic and purchasers prices and therefore includes domestic trade and transport margins and commodity taxes. Trade is modelled using nested CES (imports) and CET (exports) functions with an adaptation to mitigate the impacts of small trade shares. Production is modelled using nested CES functions; all activities (industries) are modelled as multi product activities, i.e., the SAM is configured using a Supply and Use or an Input-Output table format. There are multiple tax instruments on commodities, activities, factors and institutions and multiple sources of savings. The model is designed to include large numbers of factor (labour) and household accounts.


STAGE_1 is licensed under Creative Commons BY. ( ).


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