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Home > IMACLIM > Description of IMACLIM models > IMACLIM-Country


by Arancha Sánchez - published on , updated on

IMACLIM-Country version

The single-region version initiated with work on France. Over the years, national versions were developed for the emerging economies of Brazil and South Africa. More recently, a series of initiatives in partnership with foreign research centres have launched the development of versions on India, Saudi Arabia, China, and Argentina. The core of each of these country-scale models is similar. Behavioural and accounting equations are comparable although they embody certain particularities specific to each country’s economy, to the study that motivated the development of the model (focus on competitiveness, equity, labour market issues, etc.) and to the temporal horizon at which projections are conducted.

- IMACLIM-Country approach

- IMACLIM-Country platform

- Static or recursive resolution

- Full model and description

- IMACLIM Network and studies

IMACLIM-country approach

The country-scale IMACLIM model belongs to the class of CGE models in open economy and is based on the representation of walrasian markets of goods and services under constraint of accounting balances. In addition, IMACLIM is calibrated on, and therefore tracks, a dual quantity-economy accounting framework of economic and physical flows linked by a consistent price system.
Its descriptions of the consumers’ and producers’ trade-offs depart from the neoclassical paradigm as: (1) it is specifically designed to allow interaction with bottom-up expertise in the energy field, with a view to represent the inertias and threshold effects that evade standard production and utility functions; (2) it draws future states of the economy that are not necessarily located on equilibrated growth pathways: it computes accounting balances and Walrasian market equilibria characterized by possible underemployment of production factors (labour) and imperfect markets (goods and factors).

The model is based on a standard Social Accounting Matrix that combines an Input-Output table with a table of transactions between institutional sectors (firms, public administrations, households—which in some versions are disaggregated in several income classes and the "rest of the world").

IMACLIM-Country framework

The model follows the Arrow-Debreu formulation of volumes and prices for goods and production factors, solves walrasian markets of goods, and warrants the usual accounting identities in volume and money flows for the different markets (goods and factors) and the budgets of the institutional sectors. The income flow associated with the flow of goods starts with the factor payments plus net payments from/to the rest of the world. It continues with distribution operations orchestrated by the public administration between the four categories of agents: taxes (payroll taxes, value-added tax, excise taxes on energy products, corporate tax, income tax, etc.) and transfers (unemployment benefits, pensions, etc.). Once they have made their consumption and investment choices, agents lend or borrow on financial markets depending on whether they exhibit positive or negative net savings. This affects their financial positions and the associated income flows (debt service vs capital incomes). Active population growth and investment rates are exogenous and technical progress is implemented through factor-augmenting coefficients—the model can accommodate different types of exogenous technical progress including Harrod-, Hicks- and Solow-neutral technical progress.

IMACLIM country platform

As the core of each country model is similar, a rationalized tool provides a common architecture to all the country versions: the IMACLIM-Country platform.
Country versions mainly differ by the economic and physical accounts data that are fed to the platform, but can also consider alternative behavioural specifications and macroeconomic closure options. The modularity of the platform allows operating (i.e. hybridising data, calibrating and solving) at various levels of disaggregation of economic sectors and household groups, up to limits defined by each country’s original dataset.

Static or recursive resolution

The country-scale IMACLIM model is designed to build either counterfactual simulations (static option) at a given year, or future projections (by modelling economic growth). It was initially used for comparative statics analyses and is now mainly applied to energy-economy projections in a single time-step. Alternative sets of parameters and policy packages produce different projections that are compared as counterfactual simulations. The policy-induced transition is represented at some given stage, after a series of technical and economic adjustments whose duration and scope are embedded in the behavioural functions retained for the time horizon under consideration. The transition process itself is however not described, but implicitly supposed to be smooth enough to prevent e.g. multiple equilibria, hysteresis effects, etc.

IMACLIM-Country resolution

A recursive-dynamic version of IMACLIM-France has been developed. It is in the process of being coded on the common modelling platform, to be available to all country studies.

Full model and description

For the sake of transparency and reproducibility, the IMACLIM-Country platform code is hosted on Github with an open source access. It also gives the opportunity to have a collaborative tool between the different partners and users of the IMACLIM-Country
Link to the modeling platform

Last version of the code published:
IMACLIM-Country platform : a country-scale computable general equilibrium model

Full documentation will be online soon.

IMACLIM Network and studies

IMACLIM-Country is at the centre of an international methodological network gathering users of IMACLIM models as well as partner teams involved in similar hybrid modelling efforts.

For more information on this network, go to the IMACLIM network webpage.

For more information on projects based on IMACLIM-Country implementations, go to the Research project and Expertise webpage.