The capital market module determines direction and volume of capital flows (which are linked to the export and import of goods and energy, and which is accounted for in the intertemporal trade balance). By directing the goods trade, the capital market implementation affects the consumption path.
Interface plot missing!
| Description | Unit | A | B | |
|---|---|---|---|---|
| cm_prtpScen | pure rate of time preference standard values | x | ||
| pm_ies (all_regi) |
intertemporal elasticity of substitution | x | ||
| pm_MPortsPrice (tall, all_regi, all_enty) |
Secondary energy import price for region (only used in se_trade realisation). | x | x | |
| pm_prtp (all_regi) |
Pure rate of time preference | x | ||
| pm_pvp (ttot, all_enty) |
Price on commodity markets | x | x | |
| pm_XPortsPrice (tall, all_regi, all_enty) |
Export price for region (capacity realisation). Calculated in the postsolve and corresponding to the region secondary energy price | \(T\$/TWa\) | x | x |
| vm_cesIO (tall, all_regi, all_in) |
Production factor | x | x | |
| vm_Mport (tall, all_regi, all_enty) |
Import of traded commodity. | x | x | |
| vm_Xport (tall, all_regi, all_enty) |
Export of traded commodity. | x | x |
| Description | Unit | |
|---|---|---|
| pm_nfa_start (all_regi) |
initial net foreign asset | |
| pm_risk_premium (all_regi) |
risk premium that lowers the use of capital imports |
The debt_limit realization assumes restricted capital mobility represented by a debt constraints.
\[\begin{multline*} vm\_cesIO(t,regi,"inco") \cdot p23\_debt\_growthCoeff(regi) \geq vm\_Mport(t,regi,"good") - vm\_Xport(t,regi,"good") + \sum_{tradePe}\left( \left(\frac{pm\_pvp(t,tradePe)}{\left(pm\_pvp(t,"good")+0.000000001\right)}\right) \cdot \left(vm\_Mport(t,regi,tradePe)- vm\_Xport(t,regi,tradePe)\right)\right) + \left(\frac{pm\_pvp(t,"perm")}{\left(pm\_pvp(t,"good")+0.000000001\right)}\right) \cdot \left(vm\_Mport(t,regi,"perm") - vm\_Xport(t,regi,"perm")\right) + \sum_{tradeSe}\left( pm\_MPortsPrice(t,regi,tradeSe) \cdot vm\_Mport(t,regi,tradeSe)\right) - \sum_{tradeSe}\left( pm\_XPortsPrice(t,regi,tradeSe) \cdot vm\_Xport(t,regi,tradeSe)\right) \end{multline*}\]
\[\begin{multline*} -1.0 \cdot vm\_cesIO(t,regi,"inco") \cdot p23\_debt\_growthCoeff(regi) \leq vm\_Mport(t,regi,"good") - vm\_Xport(t,regi,"good") + \sum_{tradePe}\left( \left(\frac{pm\_pvp(t,tradePe)}{\left(pm\_pvp(t,"good")+0.000000001\right)}\right) \cdot \left(vm\_Mport(t,regi,tradePe)- vm\_Xport(t,regi,tradePe)\right)\right) + \left(\frac{pm\_pvp(t,"perm")}{\left(pm\_pvp(t,"good")+0.000000001\right)}\right) \cdot \left(vm\_Mport(t,regi,"perm") - vm\_Xport(t,regi,"perm")\right) + \sum_{tradeSe}\left( pm\_MPortsPrice(t,regi,tradeSe) \cdot vm\_Mport(t,regi,tradeSe)\right) - \sum_{tradeSe}\left( pm\_XPortsPrice(t,regi,tradeSe) \cdot vm\_Xport(t,regi,tradeSe)\right) \end{multline*}\]
Limitations The resulting consumption paths and current accounts in initial periods fit roughly to empirical data, but not as well as with imperfect market realization.
This realization considers imperfections on capital markets represented by constraints (e.g. limits on debt accumulation) and risk mark-ups on capital flows. Moreover, regionally differentiated preference paramters (so-called savings wedges) cover institutional imperfections. Compared to the perfect capital market realization, this realization substantially improves the fit of simulation results (initial consumption paths and current accounts) with the data.
\[\begin{multline*} vm\_cesIO(t,regi,"inco") \cdot p23\_debtCoeff \geq \sum_{ttot\$\left(ttot.val le t.val\right)}\left( \sum_{trade\$\left(NOT tradeSe(trade)\right)}\left( \left(\frac{pm\_pvp(ttot,trade)}{\left(pm\_pvp("2005","good") + 0.000000001\right)}\right) \cdot \left(vm\_Mport(ttot,regi,trade)- vm\_Xport(ttot,regi,trade)\right)\right) + \sum_{tradeSe}\left( pm\_MPortsPrice(ttot,regi,tradeSe) \cdot vm\_Mport(ttot,regi,tradeSe)\right) - \sum_{tradeSe}\left( pm\_XPortsPrice(ttot,regi,tradeSe) \cdot vm\_Xport(ttot,regi,tradeSe)\right) \right) \end{multline*}\]
\[\begin{multline*} vm\_cesIO(t,regi,"inco") \cdot p23\_debt\_growthCoeff(regi) \geq vm\_Mport(t,regi,"good") - vm\_Xport(t,regi,"good") + \sum_{tradePe}\left( \left(\frac{pm\_pvp(t,tradePe)}{\left(pm\_pvp(t,"good")+0.000000001\right)}\right) \cdot \left(vm\_Mport(t,regi,tradePe)- vm\_Xport(t,regi,tradePe)\right)\right) + \left(\frac{pm\_pvp(t,"perm")}{\left(pm\_pvp(t,"good")+0.000000001\right)}\right) \cdot \left(vm\_Mport(t,regi,"perm") - vm\_Xport(t,regi,"perm")\right) + \sum_{tradeSe}\left( pm\_MPortsPrice(t,regi,tradeSe) \cdot vm\_Mport(t,regi,tradeSe)\right) - \sum_{tradeSe}\left( pm\_XPortsPrice(t,regi,tradeSe) \cdot vm\_Xport(t,regi,tradeSe)\right) \end{multline*}\]
Limitations This implementation ist still under construction.
| Description | Unit | A | B | |
|---|---|---|---|---|
| p23_debt_growthCoeff (all_regi) |
maximum indebtness growth as share of GDP | x | x | |
| p23_debtCoeff | maximum indebtness as share of GDP | x | ||
| p23_ies_differentiated (all_regi) |
intertemporal elasticity of substitution | x | ||
| p23_prtp (all_regi) |
regionally differentiated pure rate of time preference | x | ||
| q23_limit_debt (ttot, all_regi) |
debt constraint | x | ||
| q23_limit_debt_growth (ttot, all_regi) |
debt growth constraint | x | x | |
| q23_limit_surplus_growth (ttot, all_regi) |
surplus growth constraint | x |
| description | |
|---|---|
| all_enty | all types of quantities |
| all_in | all inputs and outputs of the CES function |
| all_regi | all regions |
| modules | all the available modules |
| regi(all_regi) | all regions used in the solution process |
| t(ttot) | optimisation time, years between cm_startyear and 2150 with 5 to 20 years time steps |
| tall | time index, each year from 1900 to 3000 |
| trade(all_enty) | All traded commodities |
| tradePe(all_enty) | Traded primary energy commodities |
| tradeSe(all_enty) | Traded secondary energy commodities |
| ttot(tall) | time index with spin-up, years between 1900 and 2150 with 5 to 20 years time steps |
Marian Leimbach
01_macro, 02_welfare, 24_trade, 80_optimization, core