Edition 2.0
Model documentation
Theoretical framework and architecture. The document is the source of truth for mechanisms, equations and code names. This page tells you how to read it and where to get it.
How to read it
The document follows the agents of the model and closes with the markets that connect them. Chapter 1 sets out the architecture. Chapters 2 to 5 take the household, the firm, the government and the rest of the world in turn. Chapter 6 is where the pieces meet.
If you care about one part of the model, read Chapter 1, then that chapter, then the section of Chapter 6 that closes it. If you are going to work with the code, read Chapter 1 and the appendix first: between them they explain almost all of the notation.
Where the text claims something about the model, a note gives the equation, set or switch in the code that supports it.
Contents
Chapter 1: Introduction
Why the model exists, the technical problem behind its architecture, code structure, the model economy, chapter to code map
Chapter 2: Households
Savings, the Ramsey problem, the consumption tree, energy, housing services
Chapter 3: Firms
Output and price, production function, factor demand, capital, energy end purposes, the energy technology model, corporate finance
Chapter 4: Government and public finances
Revenue, expenditure, public production, sector flows, fiscal closure
Chapter 5: Rest of the world
Export demand, energy exports, imports, the external balance
Chapter 6: Markets and equilibrium
Input-output system, pricing, labour market, energy markets, emissions
Appendix A: CES trees and smart indexing
The algebra the chapters use without deriving, and how a nesting tree becomes one group of equations
At a glance
- Six chapters and one appendix
- Endnotes carry the code evidence
- Revised as the model is revised
- Published under the same licence as the model