André Lemelin, Véronique Robichaud, Bernard Decaluwé

This paper documents the PEP-w-t-F model developed by four members of the PEP research network. The PEP-w-t-F model extends the PEP-w-t recursive dynamic world model to take into account international financial assets. PEP-w-t-F is the fifth research tool of the Standard PEP Model project that emerged spontaneously from the friendship and long-standing association between the co-authors. With this model, we pursue the goals that we had initially set ourselves: to crystallize our joint CGE modeling experience, and to share the result with the PEP MPIA Network, and with the modeling community at large. In addition, PEP-w-t-F is another step towards a deepening of our understanding of CGE analysis and the development modeling techniques that will tackle new problems.

PEP-w-t-F has already been applied to examine some implications of the 2008-2011 financial and economic crisis. Preliminary results have been presented at the Thirteenth Annual Conference on Global Economic Analysis, Penang, Malaisie, 9-11 juin 2010 (Lemelin et al., 2010).

As usual, we have tried to eliminate as many errors and « misprints » as possible in this document. Needless to say, we welcome comments that will help us improve either the model or its presentation. Readers are invited to send their comments to André Lemelin at the following address: andre_lemelin@ucs.inrs.ca

A video recording of a presentation on CGE models with international financial assets, given by co-authors (Bernard Decaluwé and André Lemelin) at Université de Pau et des pays de l’Adour (UPPA, France), is available here.