This model allows members to explore the sensitivity of computable general equilibrium (CGE) models to the choice of macroeconomic closure rules using the case of the standard IFPRI model for Nigeria and Tanzania. Two sets of simulations are performed: a 50 percent decrease in import taxes and a 10 percent increase in agricultural productivity. For each simulated scenario, we study around 10 closure rules related to the government, the rest of the world, the investment-savings equilibrium, and the factors market. We find that the model’s solutions are sensitive to the choice of the macroeconomic closure rule.
Accompanying Technical Note 15 explains the methodology behind the IFPRI model and chosen closure rules and explores the results of the simulations.
Download the code for AGRODEP Macroeconomic Closure Rule Toolbox
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