ABSTRACT

This chapter describes the calibration of the model, i.e., the assignment of values to the relevant parameters and coefficients of the model which produce an initial solution, is based on the data files. An attempt to reconcile the national and the regional tables in an integrated regional system was made, using a similar procedure to the one proposed by Hulu and Hewings, preserving the original properties of the data set. The basic procedure was to disaggregate the national tables using the published regional estimates as starting points. The chapter shows the cost structure of intermediate inputs used in current production and capital creation. The focus of attention in the analysis performed thus far has been on comparisons of internal and external structures. As the absorption matrix used throughout the structural analysis will serve as the basis for the calibration of the CGE model, understanding of the relationships underlying it is fundamental for a better understanding of B-MARIA's results.