engleski

Building Computable General Equilibrium Model of Croatia

In this paper we describe the structure of the computable general equilibrium (CGE) model and data that enables estimation of certain policy changes in Croatia. Namely, we build a 5-sector (households, firms, government, investors and foreigners) economy model while our economy is disaggregated on three highly aggregated sectors. Afterwards, we present Croatian data which enables us to simulate the model in Nadoveza, Sekur and Penava (upcoming). These data are seen as snapshot of established equilibrium in 2010 in Croatia and they represent the main input for the CGE models. Finally, we conduct the reality check of our calibrated parameters.

Computable general equilibrium model ; small open economy ; social accounting matrix ; Croatia

This paper is co-financed by the European Union from the European Social Fund under the project “The Creation of Preconditions for Building a Computable Macroeconomic Model for Croatia – SPIRITH”.