# An Example of Two-Country Economy with Tariff A general equilibrium example of two-country economy with tariff. ```r gemTwoCountry_Tariff_9_5(...) ``` ## Arguments - `...`: arguments to be passed to the function sdm2. ## Returns A general equilibrium. ## Examples ```r es.DFProd <- 0.8 # substitution elasticity between domestic and foreign products es.CL <- 0.8 # substitution elasticity between capital and labor dst.firm.CHN <- node_new("output", type = "SCES", alpha = 1, beta = c(0.78, 0.22), es = es.CL, "lab.CHN", "cap.CHN" ) dst.household.CHN <- node_new("util", type = "FIN", rate = c(1, outbound.investment.rate = 0.028), "cc1", "bond.ROW" ) node_set(dst.household.CHN, "cc1", type = "SCES", alpha = 1, beta = c(0.93, 0.07), es = es.DFProd, "prod.CHN", "imported.prod.CHN" ) node_plot(dst.household.CHN) dst.foreign.trade.CHN <- node_new("imported.product", type = "FIN", rate = c(1, 0.016), "prod.ROW", "tariff.CHN" ) dst.firm.ROW <- node_new("output", type = "SCES", alpha = 1, beta = c(0.75, 0.25), es = es.CL, "lab.ROW", "cap.ROW" ) dst.household.ROW <- node_new("util", type = "SCES", alpha = 1, beta = c(0.02, 0.98), es = es.DFProd, "prod.CHN", "prod.ROW" ) dstl <- list( dst.firm.CHN, dst.household.CHN, dst.foreign.trade.CHN, dst.firm.ROW, dst.household.ROW ) ge <- sdm2(dstl, names.commodity = c( "prod.CHN", "lab.CHN", "cap.CHN", "imported.prod.CHN", "tariff.CHN", "prod.ROW", "lab.ROW", "cap.ROW", "bond.ROW" ), names.agent = c( "firm.CHN", "household.CHN", "foreign.trade.CHN", "firm.ROW", "household.ROW" ), B = { tmp <- matrix(0, 9, 5, TRUE) tmp[1, 1] <- tmp[6, 4] <- 1 tmp[4, 3] <- 1 tmp }, S0Exg = { tmp <- matrix(NA, 9, 5, TRUE) tmp[2, 2] <- 53 # the supply of lab.CHN tmp[3, 2] <- 15 # the supply of cap.CHN tmp[5, 2] <- 0.29 # the supply of tariff.CHN tmp[7, 5] <- 240 # the supply of lab.ROW tmp[8, 5] <- 77 # the supply of cap.ROW tmp[9, 5] <- 2 # the supply of bond.ROW tmp }, numeraire = "lab.CHN" ) ge$p ge$z ``` ## See Also gemTwoCountry_Bond_7_4

gemTwoCountry_Tariff_9_5 function