Economic modelling

FAO-MOSAICC comprises a Dynamic Computable General Equilibrium Model that simulates the evolution of the economy of a given country and the changes induces by variations of crop yields projected under climate change scenarios.

This model, developed in partnership with the Free University of Amsterdam, is inspired by the IFPRI DCGE model (Logfren et al. 2002; Thurlow, 2004). The model allows the user to define a number of activities producing one commodity each one to account for different crops as well as differenciated variations of crop yields across the country. The effect of crop yield variations is simulated using a shift parameter in the activity production funtions. The model provides estimations for all the endogenous variables (e.g. commodity prices, imports, taxes, households income and savings etc.). The effects of changing yields can be assessed by comparing benchmark and "shocked" situations.

 

last updated:  Friday, February 11, 2011