*I appreciate data collaboration of Graham Siddorn in the Inldand Revenue and supervision by Professor John Whalley
*in process of construction of this model.
$title multisecotral general equilibrium tax model of the uk economy Jan99

$include ptax.gms

SET
	HH      Households and labor categories  /
		H1      Household 1         /
      FD final demand /Cons
		       GGFC 
		       GDFCF 
		       Stocks 
		       Exports/;
	
ALIAS (HH,lc);

TABLE IOF(K,KK) domestic intermediate demand (Input-output flows 1995)
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
Agric	2096	0	14	27	7	5	12132	435	0	4	564	48	15	0	148	0
Extra	0	2439	0	4697	3	0	0	0	3622	0	0	0	0	0	0	0
Minin	20	0	353	218	846	26	45	130	1897	401	105	17	8	0	57	0
Chemi	1433	10	37	3899	433	546	571	1484	466	737	1299	1254	913	0	3204	19
Metal	110	162	192	1225	7249	6320	1831	5197	50	7074	503	389	5	0	84	0
Engin	0	576	317	682	1254	5705	528	2432	634	788	848	1808	1018	0	1567	36
Foodd	2797	52	25	356	82	120	6382	350	64	51	6589	650	1058	0	1796	4
othma	583	80	134	1781	1839	3005	2816	16404	474	4242	6702	4139	8242	0	3340	283
Power	279	0	160	1330	1596	1189	931	1980	12273	272	1201	857	1184	0	705	23
Const	172	0	122	109	32	56	0	31	0	21085	603	151	1985	0	146	3929
Distr	1005	200	206	1479	2489	4115	1647	3724	355	1371	4164	2470	2276	0	790	0
Trans	245	704	335	1232	2047	1415	1583	3614	183	887	14871	15642	17082	0	3175	198
Finan	1949	671	471	4070	2781	6194	4205	9177	1884	10483	22425	12387	50836	0	13435	15221
Pubad	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Educa	378	1	41	520	253	581	496	2618	179	242	1001	1369	4031	0	7756	67
House	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
;


TABLE IOFM(K,KK) imports for intermediate demand 
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
Agric	462	0	0	2	0	0	2342	394	0	0	546	9	0	0	0	0
Extra	0	133	0	1532	0	0	0	0	1613	0	0	0	0	0	0	0
Minin	0	0	68	359	540	31	4	50	312	540	0	0	0	0	0	0
Chemi	802	11	142	7931	1028	1274	844	7476	382	196	165	609	22	0	299	0
Metal	26	180	57	222	5249	2251	378	1745	0	1690	64	0	0	0	0	0
Engin	45	161	61	13	286	11980	22	2177	855	770	46	791	78	0	119	0
Foodd	291	0	0	275	0	0	4641	36	0	0	936	53	0	0	0	0
othma	0	0	79	300	478	369	565	18399	12	1900	1206	641	60	0	357	0
Power	0	0	0	3	4	1	2	3	432	0	0	0	0	0	0	0
Const	0	0	0	0	0	0	0	0	0	44	0	0	0	0	0	0
Distr	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Trans	0	504	11	0	5	0	4	0	0	2	530	2720	375	0	60	0
Finan	4	1	8	0	20	50	22	0	4	10	35	33	3369	0	886	19
Pubad	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Educa	0	0	0	1	3	8	2	55	2	0	3	38	45	0	1238	0
House	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
;

Table asset(j,K) categories of capital asset in the year 1995
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
Build 	15672 	50 	1125 	11284 	13381 	15646 	13528 	24558 	54403 	3955 	76826 	50835 	107812 	49959 	91925 	0 
pmlon	0 	2968 	0 	6703 	2621 	744 	918 	6088 	42115 	283 	6381 	21945 	968 	1778 	0 	0 
pmsho	2993 	20032 	1867 	17351 	18766 	18647 	13721 	34374 	2399 	2549 	23430 	13894 	31251 	7519 	10204 	0 
vehic	1122 	283 	71 	490 	699 	1062 	662 	1568 	501 	1715 	6448 	15425 	18478 	1055 	946 	0 
dwell	0 	0 	0 	0 	0 	0 	0 	0 	0 	0 	0 	0 	0 	0 	0 	709731 
*source:Inland Revenue
;


TABLE ZZ(*,K) MISCELLANEOUS PARAMETERS AND INITIAL DATA
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
XD	24208	17704	5493	52108	49493	73649	57114	125992	41719	84404	154987	98540	211047	63843	113957	53269
Tariff	34	6	5	136	101	214	171	405	48	66	51	26	2	0	9	0
VAT	0	0	0	0	0	0	0	0	0	0	0	218	3259	0	1181	0
dtlv	211	2	103	1175	344	176	460	331	1378	130	1275	2026	896	0	344	36
Othtxsb	-265	-25	-10	-50	-53	-46	-1454	-212	-10	-34	-443	-404	-409	0	-186	-6
Lb	7143	1409	1822	10151	15790	18529	9691	36483	5492	29947	61877	35191	70149	60316	69067	0
ka	4388	10428	738	8432	4786	9536	6250	11074	9118	1505	27820	15406	44549	3527	4381	33440
Kstock	19788 	23333 	3063 	35827 	35466 	36099 	28829 	66588 	99419 	8502 	113086 	102099 	158508 	60311 	103075 	709731 
Intdm	3755	3278	1905	21182	11863	17403	6232	24365	446	44	0	4211	4463	0	1395	0
INTSD	15495	10762	4124	16304	30392	18192	20377	54064	23981	28420	26289	63216	156189	0	19535	0
INTM	1630	989	425	10639	7613	15965	8827	30336	3612	5151	3532	4895	3949	0	2960	19
INTD	11067	4895	2410	21626	20912	29276	33168	47576	22081	47638	60876	41182	88652	0	36201	19781
TMFD	1517	0	2035	3495	222	32513	9198	33357	0	0	3518	4378	1328	416	1704	566
TFIND	8713	6942	1369	35804	19101	55457	36737	71928	17738	55983	128698	35324	54859	63843	94422	53269
Exports	1942	6942	983	28663	10230	50923	10270	39858	62	0	13701	12194	12545	0	4504	0
rexpt	46	0	2003	165	0	164	19	98	0	0	0	0	0	0	0	0
p0      1       1       1       1       1       1       1       1	1       1       1       1       1       1       1       1
;

Table DF(*, k) domestic sales to final demand
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
Cons	6730	0	339	3764	346	0	25904	18082	16353	3521	111181	19715	25373	0	43653	53269
GGFC	42	0	47	3116	588	1589	411	3872	1323	4414	1229	2637	8458	63843	46265	0
GDFCF	0	0	0	0	7158	2613	0	8933	0	47764	2586	779	8483	0	0	0
Stocks	0	0	0	261	779	332	153	1185	0	285	0	0	0	0	0	0
Exports	1942	6942	983	28663	10230	50923	10270	39858	62	0	13701	12194	12545	0	4504	0
expsub	-192	0	0	-25	-3	-9	0	-9	0	0	0	-267	0	0	-48	-5
;
																
Table MF(*, k) imports to final demand											
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
Cons	1471	0	29	2259	0	6220	8812	24075	0	0	3518	4036	0	0	1035	566
GGFC	0	0	3	873	0	3123	348	2893	0	0	0	342	1328	416	669	0
GDFCF	0	0	0	0	3	22859	0	5312	0	0	0	0	0	0	0	0
Stocks	0	0	0	199	220	148	18	979	0	0	0	0	0	0	0	0
Exports	46	0	2003	165	0	164	19	98	0	0	0	0	0	0	0	0
;


Table VATTN(k,kk) value added tax on intermediate demand
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
Agric	0	0	0	0	0	0	0	0	0	0	0	0	0	0	1	0
Extra	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Minin	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Chemi	0	0	0	0	0	0	0	0	0	0	0	10	61	0	247	0
Metal	0	0	0	0	0	0	0	0	0	0	0	3	1	0	0	0
Engin	0	0	0	0	0	0	0	0	0	0	0	8	35	0	281	0
Foodd	0	0	0	0	0	0	0	0	0	0	0	4	14	0	34	0
othma	0	0	0	0	0	0	0	0	0	0	0	22	454	0	144	0
Power	0	0	0	0	0	0	0	0	0	0	0	13	85	0	94	0
Const	0	0	0	0	0	0	0	0	0	0	0	3	223	0	4	0
Distr	0	0	0	0	0	0	0	0	0	0	0	32	206	0	16	0
Trans	0	0	0	0	0	0	0	0	0	0	0	89	957	0	138	0
Finan	0	0	0	0	0	0	0	0	0	0	0	33	1197	0	181	0
Pubad	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Educa	0	0	0	0	0	0	0	0	0	0	0	3	26	0	41	0
House	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
;

Table VATT(*, k) value added tax on final demand											
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
Cons	83	0	20	2177	60	973	4272	6201	973	492	14636	1667	0	0	1701	0
GGFC	1	0	8	209	103	793	13	741	177	753	97	272	599	0	148	0
GDFCF	0	0	0	0	273	1358	0	895	0	1179	0	2	23	0	0	0
Stocks	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Exports	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
;



Table tarrif(k,kk)  tariff on intermediate demand  											
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
Agric	19	0	0	0	0	0	95	16	0	0	22	0	0	0	0	0
Extra	0	2	0	20	0	0	0	0	21	0	0	0	0	0	0	0
Minin	0	0	1	5	7	0	0	1	4	7	0	0	0	0	0	0
Chemi	11	0	2	100	13	16	11	95	5	2	2	7	0	0	3	0
Metal	0	2	1	3	71	30	5	24	0	22	1	0	0	0	0	0
Engin	1	2	1	0	4	162	0	30	12	10	1	10	1	0	1	0
Foodd	3	0	0	3	0	0	52	0	0	0	10	1	0	0	0	0
othma	0	0	1	4	6	4	7	239	0	24	15	8	1	0	4	0
Power	0	0	0	0	0	0	0	0	5	0	0	0	0	0	0	0
Const	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Distr	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Trans	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Finan	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Pubad	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Educa	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
House	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
;


Table tariff(*,k)  tariff on final demand
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
Cons	55	0	0	27	0	80	91	294	0	0	0	0	0	0	0	0
GGFC	0	0	0	11	0	41	4	36	0	0	0	0	0	0	0	0
GDFCF	0	0	0	0	0	313	0	69	0	0	0	0	0	0	0	0
Stocks	0	0	0	3	3	2	0	13	0	0	0	0	0	0	0	0
Exports	2	0	25	2	0	2	0	1	0	0	0	0	0	0	0	0
rexpsub	2	0	25	2	0	2	0	1	0	0	0	0	0	0	0	0
;



Table duties(*,kk) duties and levies in intermediate demand												
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
Agric	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Extra	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Minin	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Chemi	190	0	94	1103	276	120	188	232	892	104	964	1909	640	0	237	11
Metal	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Engin	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Foodd	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
othma	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Power	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Const	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Distr	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Trans	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Finan	7	0	1	6	7	8	5	15	5	10	49	41	153	0	18	24
Pubad	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Educa	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
House	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
;


Table dutychitd(*,k) duties and levies in chemical and food												
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
tobacco	1	0	0	0	0	0	2	0	0	4	152	26	29	0	22	0
alcohol	2	1	0	18	3	2	196	4	0	1	61	14	23	0	39	0
sugar	0	0	0	1	0	0	38	0	0	0	3	1	1	0	2	0
fosfuel	10	0	7	43	53	42	29	75	435	10	43	33	47	0	24	1
gas	0	0	0	4	6	4	3	5	47	0	3	2	3	0	3	0
;



Table dutyf(*,*) duties and levies on final consumption
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
Cons	0	0	0	7727	0	0	12254	0	500	0	0	351	286	0	1595	0
GGFC	0	0	0	386	0	0	2	0	46	0	0	0	0	0	0	0
GDFCF	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Stocks	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Exports	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
;

Table dutychfd(*,fd)  levies and duties in chemical and food	
	Cons	GGFC	GDFCF	Stocks	Exports
tobacco	7136	0	0	0	0
alcohol	5110	1	0	0	0
sugar	8	1	0	0	0
fosfuel	425	41	0	0	0
gas	75	5	0	0	0
;


Table subsidy(*,k) Subsidies and other taxes on persons											
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
Agric	-252	0	-1	-3	-1	-1	-1411	-85	0	0	-111	-6	-1	0	-14	0
Extra	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Minin	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Chemi	-2	0	0	-12	-2	-2	-2	-9	-2	-1	-2	-4	-2	0	-3	0
Metal	0	0	0	0	-3	-2	-1	-2	0	-2	0	0	0	0	0	0
Engin	0	0	0	0	0	-3	0	-1	0	0	0	0	0	0	0	0
Foodd	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
othma	0	0	0	-1	-1	-1	-1	-7	0	-1	-2	-1	-2	0	-1	0
Power	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Const	0	0	0	0	0	0	0	0	0	-7	0	0	-1	0	0	-1
Distr	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Trans	-6	-25	-7	-28	-44	-31	-34	-79	-6	-20	-317	-378	-359	0	-67	-4
Finan	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Pubad	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Educa	-4	0	0	-6	-3	-6	-5	-29	-2	-3	-11	-15	-44	0	-96	-1
House	0	0	0	0	0	0	0	0	0	0	0	0	0	0	-4	0
;

Table subsidyf(*,k) Subsidies and other taxes on final demand
	Agric	Extra	Minin	Chemi	Metal	Engin	Foodd	othma	Power	Const	Distr	Trans	Finan	Pubad	Educa	House
Cons	-799	0	0	-14	0	-1	0	-9	0	-1	0	-496	0	0	-469	-1060
GGFC	-4	0	0	-4	0	-1	0	-2	0	-1	0	-64	0	0	-499	-2
GDFCF	0	0	0	0	-2	-5	0	-3	0	-15	0	-19	0	0	0	0
Stocks	5	0	0	0	0	0	0	-1	0	0	0	0	0	0	0	0
Exports	-192	0	0	-25	-3	-9	0	-9	0	0	0	-267	0	0	-48	-5
;



*Check for data 

parameter chk, chkk, chintd, chinm;

chk 		= sum(k, zz("lb",k));
chkk 		= sum(k, zz("ka",k));
chintd(k)	= sum(kk, iof(k,kk));
chinm(k) 	= sum(kk, iofm(k,kk));

display chk, chkk, chintd,chinm;


Table income(*,hh) Sources of Income to the households
	h1                
wage 433059
intr 195376
;

parameter subsum;

subsum(k) =sum(kk, subsidy(kk,k));

display subsum;



Parameter
        vtintd		value added tax in intermediate inputs
	vatcd(k) 	value added tax in consumption
	vatkd(k)  	value added tax in investment
	vatgd(k)  	value added tax in public cons
        vtint		value added tax rate in intermediate inputs
	vatc(k) 	value added tax rate in consumption
	vatk(k)  	value added tax rate in investment
	vatg(k)  	value added tax rate in public cons
	vtint0          base year value added tax rate on int inputs
	vatc0		base year value added tax rate on consumption
	vatk0		base year value added tax rate on investment
	vatg0		base year value added tax rate on gov consumption
	dlintd          duties and levies in intermediate inputs
        dlcd            duties and levies in consumption
	dlkd            duties and leveis in investment
	dlgd            duties and leveis rate in government consumption
	dlint           duties and levies rate in intermediate inputs
        dlc             duties and levies rate in consumption
	dlg             duties and leveis rate in government consumption
	dlk
	dlint0		base year levies and duties on int inputs
	dlc0		base year levies and duties on consumption
	dlk0		base year levies and duties on investment
	dlg0		base year levies and duties on gov consumption
	tarcd  		tariff in final consumption
	tarkd  		tariff in investment
	targd  		tariff in government consumption	
	tarintd		tariff on intermediate input
	tarc  		tariff in final consumption
	tark  		tariff in investment
	targ  		tariff in government consumption
	tarrexd
	tarc0		base year tariff on consumption
	targ0		base year tariff on gov consumption
	tark0		base year tariff on investment
	tarint		tariff on intermediate input
	tarint0		base year tariff on intermediate input
	otxsbd		other taxes and subsidies
	otxsb		other taxes and subsidy rates
	otxsb0		other taxes and subsidies in the base
	expsrt		export subsidy rate
	expsrt0
	intdm    	import for intermediate inputs
	subintd		subsidy in intermediate inputs
	subfdc		subsidy in consumption
	subfdg		subsidy in government consumption
	subfdk		subsidy in investment
	subfde 		subsidy in exorts
	subint		subsidy in intermediate inputs
	subfc		subsidy in consumption
	subfg		subsidy in government consumption
	subfk		subsidy in investment
	subfe 		subsidy in exorts
	subint0		subsidy in intermediate inputs
	subfc0		subsidy in consumption
	subfg0		subsidy in government consumption
	subfk0		subsidy in investment
	subfe0 		subsidy in exorts
	sumtar		total tariff revenue
	sumvat		total vat revenue
	sumdl		total duties and levies
	sumsub		total subsidies
;
parameter dutyfsfuel, dutygas, dutytobac, dutyalcohl, dutysugar, sumk;

* value added tax revenue
	vtintd(k,kk)	= vattn(k,kk);
	vatcd(k) 	= vatt("cons",k);
	vatgd(k) 	= vatt("GGFC",k);
	vatkd(k) 	= vatt("GDFCF",k);
	sumvat 		=sum(k, vatcd(k)+vatgd(k)+vatkd(k))+sum((k,kk),vtintd(k,kk));
	sumk(kk) 	= vatcd(kk)+vatgd(kk)+vatkd(kk)+sum(k,vtintd(kk,k));

display sumk;

*dlcd(kk)+dlgd(kk)+ sum(k,dlintd(kk,k));
* revenue from duties and levies

	dutyfsfuel(k)	=dutychitd("fosfuel",k);
	dutygas(k)	=dutychitd("gas",k);
	dutytobac(k)	=dutychitd("tobacco",k);
	dutyalcohl(k)	=dutychitd("alcohol",k);
	dutysugar(k) 	=dutychitd("sugar",k);

	dlintd(k,kk) 	 = duties(k,kk);
	dlintd("power",k)= dutyfsfuel(k)+dutygas(k);
	dlintd("foodd",k) = dutytobac(k)+dutyalcohl(k)+dutysugar(k);
	dlcd(k) 	 = dutyf("cons",k);
	dlgd(k)		 = dutyf("GGFC",k);

	dlcd("power") = dutychfd("fosfuel","cons")+dutychfd("gas","cons");
	dlcd("foodd") = dutychfd("tobacco","cons")+dutychfd("alcohol","cons")+dutychfd("sugar","cons");
	dlgd("power") = dutychfd("fosfuel","ggfc")+dutychfd("gas","ggfc");
	dlgd("foodd") = dutychfd("tobacco","ggfc")+dutychfd("alcohol","ggfc")+dutychfd("sugar","ggfc");
	sumdl = sum(k, dlcd(k)+dlgd(k))+ sum((k,kk),dlintd(kk,k));


*revenue from tariffs
	tarintd(k,kk) 	= tarrif(k,kk);
	tarcd(k) 	= tariff("cons",k);
	targd(k) 	= tariff("GGFC",k);
	tarkd(k) 	= tariff("GDFCF",k)+tariff("stocks",k);
	tarrexd(k) 	= tariff("rexpsub",k);
	sumtar 		= sum(k, tarkd(k)+targd(k)+tarcd(k)+tarrexd(k))+sum((k,kk),tarintd(k,kk));


	subintd(k,kk) =subsidy(k,kk);		
	subfdc(k)    =subsidyf("cons",k);		
	subfdg(k)    =subsidyf("GGFC",k);	
	subfdk(k)    =subsidyf("GDFCF",k)+subsidyf("stocks",k);	
	subfde(k)    =subsidyf("exports",k);	

*revenue from other taxes and personal subsidies 

display tarintd,tarcd,targd,tarkd,vtintd,vatcd,vatgd,vatkd,dlintd, dlcd,dlgd,sumtar,sumvat, sumdl,sumk;
display vtintd,vatcd,vatgd,vatkd, subintd, subfdc,subfdg,subfdk,subfde;


Parameter
	tid0   		Total investment
	id0(k) 		domestic suplly of investment
	id0m(k)		foreign supply of investment
	stock(k) 	change in stocks -domesti
	stockm(k) 	change in stock - import
	G0(k)    	government consumption -domestic
	gm0(k)          government consumption -import
	cc0(k)          consuption demand by households -domestic
	ccm0(k)  	consumption by households -imports
	m0(k)  		total imports
	dd0(k) 		total domestic demands
	cch0(hh,k) 	household demand for domestic goods
 	cchm0(hh,k) 	household demand for imported goods
	expt(k)		exports
	rexp(k)		imports re-exported
	expe(hh,k)	export earning to households
	expem(hh,k)	re-export earning to households
;


parameter
	c0(hh)          consumption of goods and leisure 
	cap0(j,k)	capital stock type asset j for sector k
	d0(hh,k)        households' final demand -domestic
	d0m(hh,k)       households' final demand -imports
	grev            government revenue 
	hit(hh)         labour income tax
	hit0(hh)        base year labour income tax rate
	incbal(*)       budget balance check
	intr(j,hh)      gross capital income to households
	iof(kk,k)       domestic intermediate demand
	kt0(k)		aggregate capital income from sector k
	k0(j,k)         capital income from asset j in sector k  
	kj0(j)          total of type j assets in the base year 
	l0(k)           labour income from sector K
	leisure(hh)     leisure demand (value net of income tax)
	mcf             marginal cost of public funds
	mkt(*)          market cleance check for the base year
	nettrn(hh)      net income transfer to households
	netwage(hh)     wage income (net of income tax)
	wages(hh)       wage income (gross of income tax)
	p0(k)           consumer prices (gross of vat)
	pindex          price index for marginal calculations
	prf(kk)         zero profit condition
	rk0(j,k)        base year return to capital (gross of tax)
	tk(j,k)         capital tax rate by assets per sector: P-tax rates
	tk0(j,k)        base year capital tax rate
	y0(k)           sectoral output (gross of tax)
	gsize		government size;


*       Extract some data:

*       capital tax rates from Ptax:

	tk(j,k) = trafo(j,k);
	tk("dwell",k) = 0;
	tk("dwell","house") = trafo("dwell","house");
	cap0(j,k) = asset(j,k);
	kt0(k) = zz("ka",k);

** Split value added from capital by value of assets in the base year 1995

	k0(j,k)   = zz("ka",k)*(cap0(j,k)/sum(jj,cap0(jj,K)));

** allocation of capital income among assets accounting for different depreciation rates
** Asset with lower depreciation rate live longer and therefore, given less weight while
** decomposing value added from capital into different assets.
 
	k0(j,k)   = zz("ka",k)*(pafo(j,k)+dep(j,k))*(cap0(j,k)/sum(jj,(pafo(j,k)+dep(j,k))*cap0(jj,K)));
	kt0(k) = sum(j,k0(j,k)-tk(j,k)*k0(j,k));
	kj0(j) =sum(k,k0(j,k));
	k0(j,k)   = k0(j,k)-tk(j,k)*k0(j,k);
	L0(k)   = zz("lb",k);

parameter ptaxr(k);

	ptaxr(k) = sum(j,tk(j,k)*(k0(j,k)/(1-tk(j,k))));

display kt0, l0, ptaxr, k0;


*the patax rate in capital stock would increase gross of tax output
*the elements of final demand are retrieved below

	y0(k)   	= zz("xd",k);
	id0(k) 		= DF("GDFCF", k);
	id0m(k) 	= MF("GDFCF", k);
	stock(k)	= DF("stocks", k);
	stockm(k)	= MF("stocks", k);
	g0(k) 		= DF("GGFC", k);
	gm0(k) 		= MF("GGFC", k);
	cc0(k) 		= DF("cons", k);
	ccm0(k) 	= MF("cons", k);
	expt(k) 	= DF("exports",k);
	rexp(k) 	= MF("exports",k);
	expe(hh,k) 	= (1/card(hh))*expt(k);
	expem(hh,k) 	= (1/card(hh))*rexp(k);

alias (kk,kkk), (kkk,kkkk);


*total imports

	m0(k)	 = sum(kk, iofm(K,kk))+id0m(k)+ ccm0(k)+gm0(k)+stockm(k);
	intdm(k) =zz("intdm",k);

	cch0(hh,k) = cc0(k);
	cchm0(hh,k) = ccm0(k);

*total final demand for domestic and imported products

	d0(hh,k) 	= y0(k)- sum(kk,iof(k,Kk))-ZZ("exports",k);
	d0m(hh,k)	= m0(k)- sum(kk,iofm(k,Kk))-ZZ("rexpt",k);

display k0,kt0, l0, cap0, d0, d0m;

*gross of capital tax price of assets in the benchmark

	rk0(j,k) = 1/(1-tk(j,k));

display tk, rk0;


*gross of tax wage and gross of tax captal income for households
 
	wages(hh) = sum(k,l0(k));
	intr(j,hh) = sum(k, k0(j,k)/(1-tk(j,k)));

display l0, wages, intr;


parameters p0c, p0k, p0g;




* compute tariff rates on intermediate and final demands
	tarint(k,kk)$iofm(k,kk) 	= (tarintd(k,kk)/iofm(k,kk)$iofm(k,kk));
	tarc(k)$ccm0(k) 		= tarcd(k)/ccm0(k);
	targ(k)$gm0(k) 			= targd(k)/gm0(k);
	tark(k)$(id0m(k)+stockm(k)) 	= tarkd(k)/(id0m(k)+stockm(k));
	tarint0(k,kk)$iofm(k,kk)	= tarint(k,kk); 
	tarc0(k)   		= tarc(k);
	targ0(k)   		= targ(k);
	tark0(k)   		= tark(k);

*subsidy rates
	subint(k,kk)$(iof(k,kk)) 	= subintd(k,kk)/(iof(k,kk));
	subfc(k)$(cc0(k)) 		= subfdc(k)/(cc0(k));
	subfg(k)$g0(k) 			= subfdg(k)/(g0(k));
	subfk(k)$(id0(k)+stock(k)) 	= subfdk(k)/(id0(k)+stock(k));
	subfe(k)$expt(k)		= subfde(k)/(expt(k));
	subint0(k,kk) 			= subint(k,kk);
	subfc0(k) 			= subfc(k);
	subfg0(k)			= subfg(k);
	subfk0(k) 			= subfk(k);
	subfe0(k)	 		= subfe(k);


*Impose duties and levies on intermediate and final consumption,investment and goverment consumption

	dlint(k,kk)$(iof(k,kk)+iofm(k,kk)) 	= dlintd(k,kk)/(iof(k,kk)*(1+subint(k,KK))+iofm(k,KK)*(1+tarint(k,KK)));
	dlc(k)$(cc0(k)+ccm0(k))         	= dlcd(k)/(cc0(k)*(1+subfc(k))+ccm0(k)*(1+tarc(k)));
	dlg(k)$(g0(k)+gm0(k)) 	      		= dlgd(k)/(g0(k)*(1+subfg(k))+gm0(k)*(1+targ(k)));
	dlk(k)					= 0;
	dlint0(k,kk) 				= dlint(k,kk);
	dlc0(k) 				= dlc(k);
	dlg0(k)			 		= dlg(k);
        
*Impose VAT on intermediate and final consumption,investment and goverment consumption

	vtint(k,kk)$(iof(k,kk)+iofm(k,kk)) 	= vtintd(k,kk)/((iof(k,kk)*(1+subint(k,KK))+iofm(k,KK)*(1+tarint(k,KK)))*(1+dlint(k,kk)));
	vatc(k)$(cc0(k)+ccm0(k))		= vatcd(k)/((cc0(k)*(1+subfc(k))+ccm0(k)*(1+tarc(k)))*(1+dlc(k)));
	vatg(k)$(g0(k)+gm0(k)) 			= vatgd(k)/((g0(k)*(1+subfg(k))+gm0(k)*(1+targ(k)))*(1+dlg(k)));
	vatk(k)$(id0(k)+stock(k)+id0m(k)+stockm(k)) = vatkd(k)/(((id0(k)+stock(k))*(1+subfk(k))+(id0m(k)+stockm(k))*(1+tark(k)))*(1+dlk(k)));

	vtint0(k,kk)	     			= vtint(k,kk);
	vatc0(k)	 			= vatc(k);
	vatg0(k)				= vatg(k);
	vatk0(k)				= vatk(k);

	expsrt(k)$expt(k)  = 	df("expsub",k)/expt(k);
	expsrt0(k) =expsrt(k);
display tarint,tarc,targ,tark, vtint,vatc, vatg,vatk,dlint,dlc,dlg, tk;
display tarintd,tarcd,targd,tarkd,vtintd,vatcd,vatgd,vatkd,dlintd, dlcd,dlgd,sumtar,sumvat, sumdl;

*  Impose a marginal income tax on labour income according to data:

	hit(hh)		=  0.38;
	netwage(hh) 	= (1-hit(hh)) * wages(hh);

*       Assume that 3/4 as much time is spent on leisure and 
*       home production for all households:

	leisure(hh) =(3/4) * netwage(hh);


Parameter 
	orev  revenue from other taxes and subsidies in production
	trev revenue from tariff
	drev revenue from duties and levies
	vrev vat revenue 
	lrev revenue from labour income tax
	krev revenue from capital income tax
;

parameter vrev1, vrev2, vrev3, vrev4;
parameter orev1, orev2, orev3, orev4, orev5;

	orev 	= sum((k,kk), subint(k,KK)*(iof(k,kk)))+sum((hh,k),(cch0(hh,k))*(subfc(k)))
			+sum(k,(id0(k))*(subfk(k))) +sum(k,(g0(k))*subfg(k))
			+sum(k,subfe(k)*expt(k));
	orev1(k) =sum(kk, subint(k,KK)*(iof(k,kk))) ; 
	orev2(k) = sum(hh,(cch0(hh,k))*(subfc(k))); 
	orev3(k) =(id0(k)+stock(k))*(subfk(k)) ; 
	orev4(k) = (g0(k))*subfg(k); 
	orev5(k) = subfe(k)*expt(k);
orev 	=  sum(k,orev1(k)+orev2(k)+orev3(k)+orev4(k)+orev5(k));


display orev1, orev2, orev3, orev4, orev5;


	trev = sum((k,kk), tarint(k,KK)*iofm(k,KK))+sum(k,ccm0(k)*(tarc0(k)))
		+sum(k,(id0m(k)+stockm(k))*(tark0(k))) +sum(k,gm0(k)*targ0(k))
		+sum(k,tarrexd(k));

*	tarint(k,kk)$iofm(k,kk) 	= (tarintd(k,kk)/iofm(k,kk)$iofm(k,kk));
*	tarc(k)$ccm0(k) 		= tarcd(k)/ccm0(k);
*	targ(k)$gm0(k) 			= targd(k)/gm0(k);
*	tark(k)$(id0m(k)+stockm(k)) 	= tarkd(k)/(id0m(k)+stockm(k));

	drev = sum((k,kk),dlint(k,kk)*((iof(k,kk)*(1+subint(k,KK))+iofm(k,KK)*(1+tarint(k,KK)))))
		+sum(k, dlc(k)*((cc0(k)*(1+subfc(k))+ccm0(k)*(1+tarc(k)))))
		+sum(k,dlg(k)*((g0(k)*(1+subfg(k))+gm0(k)*(1+targ(k)))))
		+sum(k,dlk(k)*((id0(k)*(1+subfk(k))+id0m(k)*(1+tark(k)))));


	vrev1(k)= sum(kk, vtint0(k,kk)*((iof(k,kk)*(1+subint(k,KK))+iofm(k,KK)*(1+tarint(k,KK)))*(1+dlint(k,kk))));
	vrev2(k)= vatc(k)*((cc0(k)*(1+subfc(k))+ccm0(k)*(1+tarc(k)))*(1+dlc(k)));
	vrev3(k)=vatk(k)*(((id0(k)+stock(k))*(1+subfk(k))+(id0m(k)+stockm(k)) *(1+tark(k)))*(1+dlk(k)));
	vrev4(k)= vatg(k)*((g0(k)*(1+subfg(k))+gm0(k)*(1+targ(k)))*(1+dlg(k)));
        vrev = sum(k, vrev1(k)+vrev2(k)+vrev3(k)+vrev4(k));

	lrev = sum(hh, hit(hh)*wages(hh));
	krev = sum((j,k),tk(j,k)*(k0(j,k)/(1-tk(j,k))));
	



grev = orev+trev+drev+vrev+lrev+krev;

display orev,trev,drev,vrev,lrev,krev, grev;


display vrev1, vrev2, vrev3, vrev4;


parameter
   gdc(hh,k)  consumption of domestic goods gross of taxes
   gmc(hh,k)  consumption of imported goods gross of taxes
   gid0       total investment gross of taxes
;

*total domestic demand

	gdc(hh,k) = cc0(k)*(1+subfc(k))*(1+dlc(k))*(1+vatc(k));
	gmc(hh,k) = ccm0(k)*(1+tarc(k))*(1+dlc(k))*(1+vatc(k));
	dd0(k) = sum(kk, iof(kk,k))+id0(k)+ cc0(k)+g0(k)+stock(k);

*total investment

	gid0 =sum(k,(id0(k)+stock(k))*(1+subfk(k))*(1+vatk(k)))
	     +sum(k,(id0m(k)+stockm(k))*(1+tark(k))*(1+vatk(k)));

display gdc,gmc,gid0;


*       The value of aggregate (extended) consumption:

*	c0(hh) = sum(k, cch0(hh,k)+ cchm0(hh,k)) + leisure(hh);
	c0(hh) = sum(k, gdc(hh,k)+ gmc(hh,k)) + leisure(hh);

*check the trade balance condition
parameter tbal, labtax,gsav, gsavh, vatrev;

	tbal = sum(k,m0(k)+rexp(k))-sum(k, expt(k)+rexp(k)+tariff("rexpsub",k)+df("expsub",k));


display tbal;


*       Government tax revenue:

k0(j,k)   = zz("ka",k)*(pafo(j,k)+dep(j,k))*(cap0(j,k)/sum(jj,(pafo(j,k)+dep(j,k))*cap0(jj,K)));

	kt0(k) = sum(j,k0(j,k));

kt0(k) = zz("ka",k);

	k0(j,k)   = k0(j,k)-tk(j,k)*k0(j,k);

*       Zero profit:

prf(k) = y0(k) - sum(kk, iof(kk,k)) - sum(kk, iofm(kk,k))- l0(k) 
	- sum(j, k0(j,k)/(1-tk(j,k)))-sum(kk,tarintd(kk,k))
	-sum(kk,vtintd(kk,k))-sum(kk,dlintd(kk,k))-sum(kk,subintd(kk,k));


parameter iofd, iomd, iotar,iovt,iodl;
	iofd(k)= sum(kk, iof(kk,k)); 
	iomd(k)= sum(kk, iofm(kk,k)) ; 
	iotar(k)= sum(kk,tarintd(kk,k)) ;
	iovt(k)= sum(kk,vtintd(kk,k)) ;
	iodl(k)= sum(kk,dlintd(kk,k)) ;
display k0,kt0,prf;

*,y0,iofd, iomd, iotar,iovt,iodl;


*       Market clearance:

mkt(k) 	 = y0(k) - sum(kk,iof(k,kk)) - cc0(k)-g0(k)-id0(k)-stock(k)-expt(k);
mkt("l") = sum(hh, wages(hh)) - sum(k, l0(k));
mkt("k") = sum((j,k), k0(j,k)/(1-tk(j,k))) - sum((j,hh),intr(j,hh));
display mkt, prf;


*       Assuming that the data satisfy zero profit and market 
*       clearance, use net transfers to balance income accounts:

parameter 
	tvald  total value added
	ciof   composite gross intermediate input
;

tvald(hh)  = (sum(j,intr(j,hh)))+wages(hh);
ciof(kk,k) = (iof(kk,k)*(1+subint(kk,k))+iofm(kk,k)*(1+tarint(kk,k)))*(1+dlint(kk,k))*(1+vtint(kk,k));

*+sum(k,prot(k)+tar(k))

display tvald;

parameter 
	gbal		government balance
        grinv		gross investment
        pub		total public consumption
        netintr(hh)	netinterest income
	saving		household savigns
	incadj(hh)	income adjustment term
;

*elasticities of the model

parameter ntrnrt;

pub =sum(k,(g0(k)*(1+subfg(k))*(1+dlg(k))*(1+vatg(k))))+sum(k,gm0(k)*(1+targ(k))*(1+dlg(k))*(1+vatg(k)));
gbal = grev -pub;
grinv(hh)= 1/card(hh)*gid0;

nettrn(hh) = sum(j,intr(j,hh))+(netwage(hh)+leisure(hh))-c0(hh)-sum((j,k),tk(j,k)*(k0(j,k)/(1-tk(j,k))));

labtax(hh) =hit(hh)*wages(hh);

saving(hh) = nettrn(hh)+gbal; 
incadj(hh) =grinv(hh) -saving(hh);

ntrnrt(hh) = nettrn(hh)/(sum(j,intr(j,hh))+(netwage(hh)+leisure(hh)));
display grev, pub, gbal,saving,grinv, nettrn, incadj,ntrnrt;


hit0(hh)   = hit(hh);
tk0(j,k)   = tk(j,k);



gsize =1;



TABLE elast(K,*) elasticities in central case
	SIGMAV	SIGMAK	SIGMAC	ETRAN
Agric	1.214	1.214	1.214	1.214
Extra	1.654	1.654	1.654	1.654
Minin	1.500	1.500	1.500	1.500
Chemi	1.654	1.654	1.654	1.654
Metal	1.612	1.612	1.612	1.612
Engin	1.500	1.500	1.500	1.500
Foodd	1.000	1.000	1.000	1.000
othma	0.900	0.900	0.900	0.900
Power	1.500	1.500	1.500	1.500
Const	1.000	1.000	1.000	1.000
Distr	1.600	1.600	1.600	1.600
Trans	1.600	1.600	1.600	1.600
Finan	1.600	1.600	1.600	1.600
Pubad	1.600	1.600	1.600	1.600
Educa	1.600	1.600	1.600	1.600
House	1.000	1.000	1.000	1.000
;

Parameters
	etran		transformation elsticity
	sigmav          subt. elasticity -labour and composite capital
 	sigmak 		substitution elasticity among assets
	sigmac		subt elasticity in consumption
	sigmau           sub elasticity- consumption and leisure
	sigmal           labour supply elasticity
etran0, sigmav0,  sigmak0, sigmac0, sigmau0,sigmal0;


sigmav(k) 	= elast(k,"sigmav");
sigmak(k) 	= elast(k,"sigmak");
sigmac(k) 	= elast(k,"sigmac");
sigmau(hh) 	= 1.5;
sigmal(hh) 	= 1.5;
etran(k) 	= elast(k,"etran");

etran0(k)	=  etran(k); 
sigmav0(k)	=  sigmav(k);  
sigmak0(k)	=  sigmak(k); 
sigmac0(k)	=  sigmac(k); 
sigmau0(hh)	=  sigmau(hh);
sigmal0(hh)	=  sigmal(hh);


sigmav(k) 	= 1/1.5*sigmav0(k);
sigmak(k)    	= 1/1.5*sigmak0(k);
sigmac(k) 	= 1/1.5*sigmac0(k);
sigmau(hh) 	= .5;
sigmal(hh) 	= .5;
etran(k) 	= 2.5*etran0(k);


*reference prices
parameter 
	pint0	 	reference price for domestic intermediate input
	pmint0 		reference price for imported intermediate input
	pdc0		reference price for domestic consumption  goods
	pmc0 		reference price for imported consumption goods
	pdk0 		reference price for domestic investment goods
	pmk0 		reference price for inported investment goods
	pdg0 		reference price for government consumption goods
	pmg0 		reference price for government consumption for imported goods
;


parameter 
	vatdc       composite tax on consumption of domestic goods
	vatmc       composite tax on consumption of imported goods
	vatdk       composite tax on  investment of domesitc goods
	vatmk       composite tax on investment of imported goods
	vatdg       composite tax on public consumption of domestic goods
	vatmg       composite tax on public consumption of imported goods
	vatdc0      composite tax on consumption of domestic goods
	vatmc0      composite tax on consumption of imported goods
	vatdk0      composite tax on investment of domestic goods
	vatmk0      composite tax on investment of imported goods
	vatdg0      composite tax on public consumption of domestic goods
	vatmg0      composite tax on consumption of imported goods
	alldint     composite tax on domestic intermediate goods
	allmint     composite tax on imported intermediate goods
	alldint0    composite tax on domestic intermediate goods
	allmint0    composite tax on imported intermediate goods
;

parameter crevfc,crevfk,crevfg;

vatdc(k) = (1+subfc(k))*(1+dlc(k))*(1+vatc(k))-1;
vatmc(k) = (1+tarc(k))*(1+dlc(k))*(1+vatc(k))-1;
vatdk(k)=  (1+subfk(k))*(1+dlk(k))*(1+vatk(k))-1;
vatmk(k)= (1+tark(k))*(1+dlk(k))*(1+vatk(k))-1;
vatdg(k)= (1+subfg(k))*(1+dlg(k))*(1+vatg(k))-1; 
vatmg(k)= (1+targ(k))*(1+dlg(k))*(1+vatg(k))-1;

crevfc = sum(k, (vatdc(k)*cc0(k))+vatmc(k)*ccm0(k));
crevfk = sum(k, (vatdk(k)*(id0(k)+stock(k)))+(vatmk(k)*(id0m(k)+stockm(k))));
crevfg = sum(k, (vatdg(k)*g0(k))+vatmg(k)*gm0(k));
display crevfc, crevfk,crevfg;


alldint(k,Kk) = (1+vtint(k,kk))*(1+dlint(k,kk))*(1+subint(k,kk))-1; 
allmint(k,Kk) = (1+tarint(k,kk))*(1+dlint(k,kk))*(1+vtint(k,kk))-1; 

alldint0(k,kk) = alldint(k,Kk);
allmint0(k,kk) = allmint(k,Kk);
vatdc0(k)= vatdc(k); 
vatmc0(k)=  vatmc(k);
vatdk0(k)= vatdk(k);
vatmk0(k)=  vatmk(k);
vatdg0(k)= vatdg(k); 
vatmg0(k)= vatmg(k);

	Pint0(k,kk) 	=(1+alldint0(k,kk));
	pmint0(k,kk) 	= (1+allmint0(k,kk));
	pdc0(k) 	=(1+vatdc0(k));
	pmc0(k) 	=(1+vatmc0(k));
	pdk0(k) 	=(1+vatdk0(k));
	pmk0(k) 	=(1+vatmk0(k));
	pdg0(k)		=(1+vatdg0(k));
	pmg0(k)		=(1+vatmg0(k));


display pint0, pmint0,pdc0,pmc0,pdk0,pmk0,pdg0,pmg0;


$ONTEXT

$MODEL:UK
$ECHOP:.TRUE
*$FUNLOG:.TRUE
*$DATECH:.TRUE

$sectors:
	y(k)    		! production
	ls(hh)  		! labor supply
	c(hh)   		! consumpion
 	IM(K)$(m0(k))		! imports
        inv			! investment
        go			! public good production
	x(k)$expt(k)		! export
        u(hh)			! Utility
        intd(k,kk)$(iof(k,kk)+iofm(k,kk)) !composite intermediate input
	mint(k,kk)$(iofm(k,kk))	!imported intermediate input
	dint(k,kk)$(iof(k,kk))	!domestic intermediate input
	imf(k)$(ccm0(k)+gm0(k)+id0m(k)+stockm(k))		!imports for final demand

$commodities:
	pd(k)    	   			! domestic supply price
        PM(K)$m0(k)				! import price
        pfx      				! foreign price in terms of dom price
	px(k)$expt(k)				! export price
	rk(j)		 			! capital rental rate
	pl      				! wage rate
	ple(hh) 				! net of tax wage
	pc(hh)  				! unit expenditure cost households
	pint(k,kk)$(iof(k,kk)+iofm(k,kk)) 	! price of composite intermediate input		
	Pmint(k,kk)$(iofm(k,kk)) 		! price of imported intermediate input
	Pdint(k,kk)$(iof(k,kk))  		! price of domestic intermediate input
	pmc(k)$ccm0(k)				! consumption price of imports
	pmk(k)$(id0m(k)+stockm(k))  		! investment price of imports
	pmg(k)$gm0(k)  				! public consumption price of imports
        pu(hh)                  		! cost of leisure plus composite good
        pinv					! price of investment goods
        pg					! price of public consumption

$consumers:
	ra(hh)  		! income of private households
	govt    		! revenue account
	invest 			! financing investment

$AUXILIARY:
	  TAU_Tk                 ! capital tax replacement multiplier
	  TAU_Tc                 ! consumption tax multiplier
	  TAU_Tg                 ! public consumption tax multiplier
	  TAU_VTk                ! investment tax multiplier
	  TAU_IT                 ! Labor income tax replacement multiplier
	  TAU_InT(k)             ! Labor income tax replacement multiplier
	  tau_ls       	         ! lump sum replacement tax

$prod:y(k)  s:0  t:etran(k) va:sigmav(k) L(va):sigmak(k)
 	o:pd(k)					q:(y0(k)-expt(k))
	o:px(k)$expt(k)              		q:(expt(k))        
	i:pint(kk,k)$(iof(kk,k)+iofm(kK,k))	q:ciof(kk,k)
	i:pl            			q:l0(k)            va:
	i:rk(j)		 			q:(k0(j,k))  a:govt N:tau_tk M:(tk(j,k)/(1-tk(j,k)))  p:rk0(j,k) L: 

$prod:intd(k,kk)$(iof(k,kk)+iofm(k,kk))
	o:pint(k,kk)$(iof(k,kk)+iofm(k,kk))	q:ciof(k,kk)
	i:pdint(k,kk)$(iof(k,kk))               q:iof(k,kk)    a:govt   N:tau_int(k) M:alldint(k,kk)              P:Pint0(k,kk)
	i:pmint(k,kk)$(iofm(k,kk)) 		q:(iofm(k,kk)) a:govt   N:tau_int(k) M:allmint(k,KK)		 P: Pmint0(k,kk)


$prod:Dint(k,kk)$(iof(k,kk)) 
	o:pdint(k,kk)$(iof(k,kk))  		q:iof(k,kk)
	i:pd(k)           			q:iof(k,kk)  


$prod:mint(k,kk)$(iofm(k,kk)) 
	o:pmint(k,kk)$(iofm(k,kk)) 		q:(iofm(k,kk))
	i:pm(k)$m0(k)                          	q:iofm(k,kk) 	

$prod:x(k)$expt(k)
	o:pfx				q:(expt(k)+df("expsub",k))
        i:px(k)$expt(k)         	q:(expt(k)) 	 a:govt T:expsrt(k)  P:(1+expsrt0(k))


$prod:im(k)$m0(k)
  	o:pm(k)$m0(k)		 	q:(m0(k))
        i:pfx           	 	q:m0(k)	

$prod:imf(k)$(ccm0(k)+gm0(k)+id0m(k)+stockm(k))
	o:pmc(k)$ccm0(k)		q:(ccm0(k))    
	o:pmk(k)$(id0m(k))		q:(id0m(k))       
	o:pmk(k)$(stockm(k))	        q:(stockm(k))  
	o:pmg(k)$gm0(k)			q:(gm0(k))   
	i:pm(k)$(m0(k))			q:(ccm0(k)+gm0(k)+id0m(k)+stockm(k))


$prod:u(hh)     a:sigmau(hh)    
	o:pu(hh)        q:c0(hh)
	i:pc(hh)        q:(sum(k, gdc(hh,k)+gmc(hh,k)))  a:    
	i:ple(hh)       q:leisure(hh)         		 a:     


$prod:c(hh) a:sigmac(hh) b:sigmau(hh) 
     o:pc(hh)     	q:(sum(k, gdc(hh,k)+gmc(hh,k)))
     i:pd(k)      	q:(cch0(hh,k))  	a:govt  N:tau_tc M:vatdc(k)   a:  P:pdc0(k)   
     i:pmc(k)$ccm0(k)   q:(cchm0(hh,k))   	a:govt  N:tau_tc M:vatmc(k)   a:  P:pmc0(k)


$prod:inv
      o:pinv      			q:gid0
      i:pd(k)     		 	q:(id0(k)+stock(k))     a:govt   N:tau_vtk M:vatdk(k)   P:pdk0(k)
      i:pmk(k)$(id0m(k)+stockm(k))      q:(id0m(k)+stockm(k))    a:govt   N:tau_vtk M:vatmk(k)   P:pmk0(k)


$prod:go  s:2
      o:pg        	q:pub
      i:pd(k)     	q:g0(k)  a:govt	 N:tau_tg M:vatdg(k)    P:pdg0(k)
      i:pmg(k)$gm0(k)   q:gm0(k) a:govt	 N:tau_tg M:vatmg(k)    P:pmg0(k)
 

$prod:ls(hh)  d:sigmal(hh)
	o:pl            q:(wages(hh))   a:govt N:tau_it M:hit(hh) P:(1-hit0(hh))
	i:ple(hh)       q:(netwage(hh))  d:
 
        
$demand:ra(hh)
       d:pu(hh)                q:c0(hh)
       e:ple(hh)       	       q:(leisure(hh)+netwage(hh))  
       e:rk(j)		       q:(sum(k,k0(j,k))) 
       e:pu(hh)       	       q:(nettrn(hh))   R:tau_ls 
       e:pfx		       q:tbal

$demand:govt
	d:pg            q:(pub)
	e:pg		q:(grev)
        e:pu(hh)        q:(-gbal)


$demand:invest
      d:pinv         q:(gid0)
      e:pu(hh)       q:saving(hh)
*      e:pd(k)        q:(df("expsub",k))
 

$report:
	V:Y1(k)    O:Pd(k)    PROD:Y(k)
	V:x1(k)    O:Pfx      PROD:x(k)
	V:m1(k)    O:Pm(k)    PROD:im(k)
	V:C1(HH)   O:Pc(hh)   PROD:C(HH)
	V:tint(kk,k)$(iof(kk,k)+iofm(kK,k))   o:pint(kk,k)    PROD:intd(kk,k)
	V:L1(k)    I:PL      PROD:Y(k)
	V:K1(j,k)  I:RK(j)   PROD:Y(k)
	V:LS1(HH)  i:PLe(hh) PROD:LS(HH)
	V:U1(HH)   O:PU(hh)  PROD:U(HH)
	V:go1	   O:pg	     prod:GO
	V:inv1	   O:pinv     prod:inv
	V:LE(HH)   I:PLE(HH) PROD:U(HH)
	V:W1(hh)   D:PU(HH)  DEMAND:RA(HH)
	V:W(HH)    W:RA(HH)     



$CONSTRAINT:TAU_Tk
        gsize =E= go;

$CONSTRAINT:TAU_IT
        go =E= Gsize;

$CONSTRAINT:TAU_tc
        go =E= Gsize;
$CONSTRAINT:TAU_int(k)
        go =E= Gsize;

$CONSTRAINT:TAU_vtk
        go =E= Gsize;

$CONSTRAINT:TAU_tg
        go =E= Gsize;

$CONSTRAINT:TAU_ls
        go =E= Gsize;

$offtext
$sysinclude mpsgeset uk


TAU_Tk.l 	=1;
TAU_Tc.L 	=1;
TAU_Tg.L 	=1;
TAU_VTk.L 	=1;
TAU_InT.L(k) 	=1;
TAU_IT.L 	=1;
TAU_ls.L	 =1;

pfx.fx 		=1;

option decimals =4;
uk.workspace 	=15;
option mcp 	=path;
uk.iterlim 	=0;
$include uk.gen
solve uk using mcp;





parameter 
		reva  		government revenue
		meb 		marginal excess burden of taxes
		va(k)		value added net of tax	
		betak(k,J)	share of asset j in capital income 
		alpha(hh) 	share of composite consumption 
		alphal(Hh)      share of leisure
		sumalphc	total of consumption share
		alphac		consumption share deaggregated
		VAS		share in value added
		lifetk		capital income tax rate in new life assumptions
		tbalk
		cvgdp_
;

parameter    	welfare   change in utility of households
		capital   change in capital stock by sector and assets
		output    change in output by sector
		employ    change in sectoral employment
		export    change in exports
		Import    change in imports
		intrd	  change in intermediate input use
		consm	  change in level of consumption
		labsup    change in labour supply
		ch_leis   change in leisure
		ktmult    capital income tax multiplier
		vtmult    consumption tax multiplier
		htmult    labour tax income multiplier
		prmult    production tax multiplier
		trmult    tariff rate multiplier
		baserev   revenue in the base case
		newrev    revenue in the new case
		ktax      new capitaltax rate
		leiper	  percentage change in leisure
		lsper	  percentage change in labour supply
                emplper   percentage change in employment
		emplpr    percentage change  in employment
		outper    percentage change  in output
		capper    percentage change  in assets by sector
		basewage  baseyear wage
		newwage   wage in new solution
		leiprice  price of leisure
		mprice	  domestic price of imported commodity
		xprice    domestic price of exports
		basew
		cup       composite utility price
		ccp	  composite consumption price
		govc

;
parameter 
		captax 		new tax rate on capital income
		constax 	new tax rate on consumption
		congtax 	new tax rate on consumption
		conitax 	new tax rate on consumption
		prodtax 	new tax rate on production
		ntarif  	new tariff rate
		labtaxn 	new tax rate on labour income
		invch		change in investment 
	        goch		government size
		revindx		revenue index
		revindx1	revenue index
		ubase		base utility
		ibase           base household income
		gobase          base government consumption
		gibase 		base government income
		invbase         base inverstor resources
		invibase        investors baseyear income
		xbase
		mbase
		xvolume
		mvolume
		cbal
		cbalbase
		EV		Hicksian moneymetric EV for households
		CV		Hicksian moneymetric CV for households
		EVg		Hicksian moneymetric EV for government
		CVg		Hicksian moneymetric CV for government
		EVk 		Hicksian moneymetric EV for investors
		CVk 		Hicksian moneymetric CV for investors
		EVT		Total Hicksian moneymetric EV 
		CVT		Total Hicksian moneymetric EV 
		evgdp		Hicksian moneymetric EV  as % of 1995 UK GDP 
		cvgdp		Hicksian moneymetric CV  as % of 1995 UK GDP 
		capinflow       inflow(+) or outflow(-) of capital
		asstallow0	inflow of assets by sector
		asstinfln	inflow of assets by sector
		kstokk
		welfr
		chekk		% of error in allocation of assets 
		swelf0		Aggregate social welfare in the base case
		swelf1          New aggregate social welfare
		swelf2          change in aggregate social welfare
		meb		marginal excess burden of taxes
		 evgdp_
		stbal
lselas(hh)
;


Option decimals =5;




reva 		  = govt.L;
va(k) 		  = PL.L*L1.L(k) +sum(j, RK.L(j)*K1.L(j,k));
betak(k,J) 	  =  (rk.L(j)*K1.L(J,K))/va(k);
vas(k, "cap") 	  =sum(j, betak(k,J));
vas(k, "lab") 	  =(PL.L*L1.L(k))/va(k) ;
vas(k, "va") 	  =PL.L*L1.L(k) +sum(j, RK.L(j)*K1.L(j,k));
alpha(hh)  	  =(pc.l(hh)*c1.l(Hh))/(sum(k,gdc(hh,k)+gmc(hh,k))+leisure(hh));
alphac(k,hh) 	  =(gdc(hh,k)+gmc(hh,k))/SUM(KK,(gdc(hh,kk)+gmc(hh,kk))); 
sumalphc 	  = sum((k,hh), alphac(k,hh));
alphaL(Hh) 	  = 1-alpha(hh);
alphac(k, "govt") = ((g0(k)*(1+vatg(k)+dlg(k)+subfg(k)))+gm0(k)*((1+targ(k)+vatg(k)+dlg(k)+subfg(k))))/pub;
alphac(k,"invest")= ((id0(k)*(1+vatk(k)+subfk(k)))
                    +(id0m(k)*(1+tark(k)+vatk(k)+subfk(k)))
                    +(stock(k)+stockm(k))
                    )/gid0;
baserev 	= grev;
basew 		= pl.l;
ubase(hh) 	= u1.l(hh);
ibase(hh)	= ra.l(hh);
gobase 		= go1.l;
gibase		= govt.l;
invbase 	= inv1.l;
invibase 	= invest.l;
xbase(k)	=x1.l(k);
mbase(k)	=m1.l(k);
cbalbase 	= sum(k,xbase(k) -mbase(k));
display va,betak,vas,alpha,alphal,alphac, sumalphc;

display ubase, ibase, gobase, gibase, invbase, invibase;


uk.iterlim =100000;

$exit
*uniform tax case

** central elasticities

etran(k)=  etran0(k); 
sigmav(k)= 1/2*sigmav0(k);  
sigmak(k)=  1/2*sigmak0(k); 
sigmac(k)=  sigmac0(k); 
sigmau(hh)=  0.5*sigmau0(hh);
sigmal(hh)=  0.5*sigmal0(hh);

TAU_Tk.l 	=1;
TAU_Tc.fx 	=1;
TAU_Tg.fx 	=1;
TAU_VTk.fx 	=1;
TAU_InT.fx(k) 	=1;
TAU_IT.fx 	=1;
TAU_ls.fx	 =1;



TAU_Tk.lo =-inf;
TAU_Tk.up =inf;
tk(j,k) = 0.3;




$include uk.gen
solve uk using mcp;


$include out.gms
$include ev.gms


display "central",sigmav,  sigmak, etran,sigmac, sigmau,sigmal,tk0,captax, 
vatc0, constax, vatg0, congtax,vatk0, conitax, hit0,labtaxn,tarint0;

display welfare, output,capital, employ, intrd,export, import,consm,ch_leis, pub,
baserev, newrev, leiper, lsper,emplpr, outper, capper,chekk,basewage, newwage, leiprice,mprice,xprice;

display "central",ev,cv,evg,evg,evk,cvk,evt,cvt,evgdp_,cvgdp,kstokk,capinflow;
display "central",lsper,emplpr, outper, capper, tk0;
display "central", xbase, mbase,cbalbase, xvolume, mvolume, cbal;

$exit
TAU_Tk.l 	=1;
TAU_Tc.fx 	=1;
TAU_Tg.fx 	=1;
TAU_VTk.fx 	=1;
TAU_InT.fx(k) 	=1;
TAU_IT.fx 	=1;


asstallow0(j,k) 	=k1.l(j,k)-k0(j,k);
*fix the rental rate to base year values
$ontext
rk.fx(j) =1;

*	TAU_tk.up = inf;
	tk(j,k) =0.3;


$include uk.gen
	solve uk using mcp;

  tbal = sum(k, px.l(k)*x1.l(k)-pm.l(k)*m1.l(k))+sum(j,sum(k,k1.l(j,k)-k0(j,k)));

$include uk.gen
	solve uk using mcp;

$include out.gms
$include ev.gms

asstinfln(j,k)$k0(j,k) 	=(((k1.l(j,k)-k0(j,k))-asstallow0(j,k)))/cap0(j,k);

display tbal,capinflow, asstallow0,asstinfln;
$offtext
etran(k)=  2*etran0(k); 
sigmav(k)= 1/2*sigmav0(k);  
sigmak(k)=  1/2*sigmak0(k); 
sigmac(k)=  sigmac0(k); 
sigmau(hh)=  .5*sigmau0(hh);
sigmal(hh)=  .5*sigmal0(hh);

*household income taxes
TAU_Tk.fx 	=1;
TAU_tk.lo =-inf;
TAU_tk.up = inf;
*TAU_it.lo =-inf;
*TAU_it.up = inf;
TAU_ls.lo =-inf;
TAU_ls.up = inf;
hit(hh) = 0.2;


$include uk.gen
	solve uk using mcp;

$include out.gms
$include ev.gms



display "hit",sigmav,  sigmak, etran,sigmac, sigmau,sigmal,tk0,captax, 
vatc0, constax, vatg0, congtax,vatk0, conitax, hit0,labtaxn,tarint0;

display "hit", welfare, output,capital, employ, intrd,export, import,consm,ch_leis, pub,
baserev, newrev, leiper, lsper,emplpr, outper, capper,chekk,basewage, newwage, leiprice,mprice,xprice;

display "hit",ev,cv,evg,evg,evk,cvk,evt,cvt,evgdp_,cvgdp,kstokk,capinflow;
display "hit",lsper,emplpr, outper, capper, capinflow, capital;

display "hit", xbase, mbase,cbalbase, xvolume, mvolume, cbal;

display tarint0,tarc0,targ0,tark0,vtint0,vatc0,vatg0,vatk0,dlint0, dlc0,dlg0,hit0,tk0;


$exit

$include ptaxl.gms
lifetk(j,k) =trafo(j,k);
tk(j,k) =lifetk(j,k);

$include uk.gen
solve uk using mcp;

$include out.gms
$include ev.gms
captax(j,k,"life") =TAU_Tk.L*tk(j,k);

display "life",sigmav,  sigmak, etran,sigmac, sigmau,sigmal,tk0,captax, 
vatc0, constax, vatg0, congtax,vatk0, conitax, hit0,labtaxn,tarint0;
display "life",lsper,emplpr, outper, capper;
display "life",tk0, lifetk;
display "life", welfare, output,capital, employ, intrd,export, import,consm,ch_leis, pub,
baserev, newrev, leiper, lsper,emplpr, outper, capper,chekk,basewage, newwage, leiprice,mprice,xprice;

display "life",ev,cv,evg,evg,evk,cvk,evt,cvt,evgdp_,cvgdp,kstokk,capinflow;

display	vatdc0,	vatmc0,	vatdk0 ,vatmk0, vatdg0, vatmg0,alldint0, allmint0;