Dr. Erinc Yeldan
 

Below you are given rudimentary data on 1987 balances of the Turkish economy. The data distinguish four production sectors, two labor categories, three household types and a government.

Starting from this data set:

1. Create consistent SAM accounts to support a general equilibrium model.
2. Based on your SAM, generate an applied general equilibrium model. Calibrate the model to any functional form(s) that you find suitable.
3. After obtaining a "base-period" equilibrium, carry out an experiment simulation which you find "relevant" and "interesting" in the development economics context. Motivate the reader (in this case, ME) that your exercise is REALLY interesting, and relevant, addressing some important policy question either in Turkey, or has some policy implications for the developing world.
4. Supply an analytical discussion of your results.
5. This project is due to the Final Exam date for the course. I am at your service for all your questions. GOOD LUCK.

TABLE IO(I,J) 1987 INTERMEDIATE INPUT FLOWS
                  AGRI              IND            CSERV        PSERV
 AGRI   1597.30055    8020.50312      19.10834    54.19615
 IND      1590.59554  19811.54550  2917.89319  790.89619
 CSERV   418.10264   7084.29615    867.50760   274.29806
 PSERV    650.80123   2270.82453   992.60378   342.49592
     ;
 

TABLE WAGES(I,LC) SECTORAL WAGE PAYMENTS
               AGLAB     URLAB
 AGRI   5519.804     0.000000
 IND       0.00000      4512.102
 CSERV  0.00000      3705.200
 PSERV  0.00000      3611.800
     ;

TABLE XLE(I,LC) EMPLOYMENT BY SECTOR AND LABOR CATEGORY   *(1000 PERSONS)
              AGLAB          URLAB
 AGRI      8735.000       0.00000
 IND         0.00000       2980.00000
 CSERV   0.00000       1718.00000
 PSERV   0.00000        2517.00000
     ;
 

TABLE HHINC(*,HH) HOUSEHOLD INCOME DATA
             RURHH        LABHH       URCAP
*Household Gross Income
 YH         10788.3     14518.3          31059.0
*Private savings
 MPS        0.110006    0.129998      0.241228
*Transfers from the Government
 TRSFER      393.3      1824.5           3299.3
*Private Income Taxes paid
 HTAX        340.7      2810.4            4173.7
     ;
 

TABLE CLES(I,HH)  PRIVATE CONSUMPTION by SECTORS

                RURHH         LABHH         URCAP
AGRI    1988.02260     869.80263     1283.98845
IND       5120.14638    6687.88415  12184.09150
CSERV 1172.50775     1356.89129   3155.30537
PSERV  1017.70823    1271.29936    2977.09778
      ;
 

TABLE MATBAL(*,I)  MATERIAL BALANCES AND MISCELLANEOUS
                        AGRI           IND           CSERV        PSERV

 PD0              1.000000     1.000000      1.000000      1.000000
 M0              675.30000     11453.000      0.000000     0.000000
 E0               678.00000     6994.2000    3615.1000     0.000000
 TARIFFS    61.600000   1994.10000      0.00000       0.000000
 TE                   0.0000          0.0000          0.0000         0.0000
*Sectoral output supplies
 XS0          13824.8000    57908.600    18391.100   13822.0000
*Sectoral capital stocks
K0             20169.2000    77192.100    70970.900    53339.1000
*Indirect taxes paid
 ITAX             37.6000     1719.500      1126.300        437.9000
*Sectoral investment demand
ID0                  20.700      13914.300       166.600        721.2000
*Private consumption by sectors
 CD0            4141.800     23992.100       5684.700      5266.1000
*Government consumption by sectors
 GD0               30.100        1433.900       280.5000      3578.1000
       ;
 

SCALAR
         GOVINV  GOVERNMENT INVESTMENT           / 7790.0 /
        CTAX        CORPORATE TAX REVENUES           /4308.8 /
         ER0           EXCHANGE RATE                                 / 854.63 /
         GDTOT     TOTAL GOV CONSUMPTION             /5322.6/
         GREV        GOVERNMENT REVENUES               /17079.9/
         PRINV       TOTAL PRIVATE INVETSMENT        /7033.0/
          HHSAV     TOTAL PRIVATE SAVINGS               /9156.789/
          GSAV        TOTAL GOVERNMENT SAVINGS    /4825.9/
          REMIT       WORKER’S REMITTANCES IN TL   /1729.3/
*NOTE: Half of REMIT income goes to RURHH, the other half goes to LABHH *income
          PBOR         PRIVATE BORROWING FROM ROW IN TL   /505.7/
*Note: All PBOR accrues to gross income of the URCAP household
          GBOR       Government borrowing from abroad                      /69.3/
*Note GBOR is registered as exogenous income to total revenues of the government
 PBSIDEF   GOV SAVING-INVESTMENT DEFICIT         /2964.1/
            GBINROW   GOV DEBT PAYMENT TO THE ROW IN TL  /1414.3/
*Note: GBINROW is paid out of government revenues
             GBORINV   GOV BORROWING FOR GOV INVESTMENT   /840.3/
*Note: GBORINV is used to finance PBSIDEF. The rest is financed from private savings.
             PRDBTROW PRIVATE DEBT PAYMENTS TO ROW        /799.3/
*Note: PRDBTROW is paid out of URCAP household gross income.