CAPRI
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capri:concept:market [2011/10/04 08:01] – wolfgangbcapri:concept:market [2011/10/04 08:02] – wolfgangb
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       tend to increase quadratically with the number of country blocks in a spatial model, not all countries of the world are covered individually.       tend to increase quadratically with the number of country blocks in a spatial model, not all countries of the world are covered individually.
  
-      Rather, CAPRI uses <A HREF="regMarket.htm">28 trade blocks</A>, leading to a total of around 40.000 endogenous variables and the same number of equations.+      Rather, CAPRI uses <A HREF="regMarket.htm">32 trade blocks</A>, leading to a total of around 46.000 endogenous variables and the same number of equations.
  
       Some of the trade blocks, as EU15 or EU10 are broken down to individual countries to allow for a welfare analysis at the country level so that the model       Some of the trade blocks, as EU15 or EU10 are broken down to individual countries to allow for a welfare analysis at the country level so that the model
  
-      differentiates between 60 individual countries or country blocks. Changes in the+      differentiates between 67 individual countries or country blocks. Changes in the
  
       trade flows are based on the Armington assumption which uses a CES utility function to aggregate from single trade flows to total       trade flows are based on the Armington assumption which uses a CES utility function to aggregate from single trade flows to total
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       market appearances so that trade shares depend on price relations. Two CES nests are applied: one to break total market appearances       market appearances so that trade shares depend on price relations. Two CES nests are applied: one to break total market appearances
  
-      into from domestic production and imports, and a second one to break imports into individual origins. Accordinly, it is assumed that product quality+      into from domestic production and imports, and a second one to break imports into individual origins. Accordingly, it is assumed that product quality
  
       is differentiated by origin and determines the willingness to pay of the consumer.</P>       is differentiated by origin and determines the willingness to pay of the consumer.</P>
   
 
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