© Scott McDonald
STAGE_3
STAGE_3 is a consolidated version of the STAGE CGE model designed for policy analysis in Comparative Static and Recursive Dynamic modes within a single model. The process of producing a robust CGE model for general release inevitably requires compromises, i.e., some simplification of behavioural relationships and the removal of some model features, e.g., imperfect competition. Early versions of STAGE_3 provided the basis for STAGE_CC. It was produced from the current version of the STAGE model in late 2023.
It is probable that revisions to STAGE_3 will be made over the next few years. They will be detailed in revisions to the technical document.
STAGE_3 is a designed so that it can encompass a wide range of different single country model configurations, e.g., an energy model with emissions counting, water as a produced product, semi-subsistence/peasant households, labour markets and labour-leisure trade-offs. It encompasses features previously in model variants, e.g., investment decisions with multiple capital types, factor mobility functions, etc. Different configurations of the model are dependent on the SAM and other data used to calibrate the model. The model is consistent with the price systems in the SNA and SEEA.
The model includes for example the following features: CES functions for imports and CET functions for exports; generalised nesting for production and utility functions; flexible macroeconomic closure and (factor) market clearing conditions; flexible exchange rates; Value Added taxes; energy use and emissions taxes; air pollution and emissions tracking; production functions for multiple types of capital; etc.
At the heart of the recursive dynamic modules is a system of perpetual inventories that track the evolution in the quantities and ‘qualities’ of factors of production. The inventories for physical capital goods allow, inter alia, for tracking ‘vintages’ of capital goods. The inventories for labour are exogenously determined. There no inventories for emissions.
The technical documentation reflects, as accurately as can be, the state of the model on the date on the front page of the technical document; it is nearly always out of date.
LICENSING
STAGE_3 is licenced under Creative Commons CC BY-NC-ND 4.0 - By, Non-Commercial and Non distribution license (https://creativecommons.org/licenses/by-nc-nd/4.0/ ).
Email: scott@cgemod.org.uk