Gemodel Pro Simulates Economic Growth

GEMODEL PRO is a general equilibrium modeling package for Windows. It solves for a large open economy and accomplishes every task from calibration to report preparation including the measurement of welfare change by improvements in economic efficiency and in the terms of trade. A detailed, 145-page manual accompanies the software.

The software allows the user to choose from a set of hard-coded equations to specify his model. Changes in the number of equations and in the model specification and model closure are made by selection from menu choices and by insertion of parameter and variable values in GEMODEL spreadsheets. No computer programming is required. Aggregation, calibration, policy changes and solutions are obtained by simple clicks on dialog boxes and by some typing of assumed parameter values. There is no need for other equation-solving software and compilers. Unlike other solvers, this one operates directly on non-linear equations; it does not linearize to go off on a tangent and reach false solutions. Read the manual for in-depth description of GEMODEL.PRO.

GEMODEL PRO is supplied in two versions. The Professional version allows 2 to 126 industrial sectors and 1 to 126 households and simulates growth over more than 100 years with myopic expectations. The Standard version allows 2 to 32 sectors and 1 to 32 households and does not simulate growth. Both versions allow the disaggregation of government revenue and expenses. Federal and State/local tax policy can be modeled separately. Thus the model can be used to ask what is gained by removing tax distortions by tax reform at one government level while tax distortions remain at the other government level.

Both versions of GEMODEL PRO are supplied with sample US data. The Professional version also includes a 30-sector model of Canada. Applications to other countries are also possible. GEMODEL PRO is not country-specific. The manual has detailed instructions for and examples of data collection and assembly into a consistent data set. Essential input-output data and some social accounting matrices are available for numerous countries.

A paper on marginal costs of taxes imposed for income redistribution prepared with this software is available.