- Joint Program Technical Note
Abstract/Summary:
The document is intended to serve as a guide for beginners in MPSGE (Mathematical Programming System for General Equilibrium Analysis). It starts with a short introduction to the class of economic problems which can be solved with MPSGE, followed by a detailed description of step-by-step transformation of a simple static general equilibrium model into a dynamic Ramsey model. The model is based on a simplified dataset. Two cases are considered: the first dataset represents an economy on the steady-state growth path and the second dataset is of the steady-state growth path in a base year. The paper includes GAMS-MPSGE codes which can be copied and used as a starting point for further exploration of dynamic economic modeling.