PETS is a multi-region, multi-sector, dynamically recursive, and partial equilibrium (PE) model. The model developed in Fontagne, Laborde, and Mitaritonna (2011) focuses on trade policy analysis using disaggregated geographical and sectoral levels of data. The model emphasizes the demand side, which is specified as a nested CES structure, where the initial regional income is assumed to be fixed. The demand is expressed at various levels of disaggregation matched by increasing substitutability (elasticity of substitution increases with higher level of disaggregation).
The PETS Model corresponds with the documentation provided in AGRODEP Technical Note 12, by David Laborde and Simla Tokgoz.
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