GCAM v9.1 Documentation: External Inputs for Modeling the Economy

Documentation for GCAM
The Global Change Analysis Model

View the Project on GitHub JGCRI/gcam-doc


External Inputs for Modeling the Economy

GCAM’s economic inputs include information on population and income. These inputs are required for each geopolitical region and historical year.

GCAM’s economy-related inputs include socioeconomic drivers, national-account data, labor-market information, and macroeconomic calibration parameters, for each geopolitical region and historical year. These inputs are processed in gcamdata and written to the socioeconomic XML files used by GCAM. The main socioeconomic drivers include population, GDP, employment/labor supply, and total factor productivity (TFP). Additional macroeconomic inputs are used to calibrate capital stocks, depreciation, savings, investment, factor compensation, trade-balance terms, and macroeconomic production-function parameters.

The data processing described here supports both fixed-GDP configurations, in which GDP follows exogenous scenario assumptions, and GCAM-Macro configurations, in which TFP is calibrated so that open-GDP reference runs reproduce the corresponding socioeconomic GDP trajectories. The conceptual structure of GCAM-Macro is described in the Economy page.

Note for a detailed description on how to update TFP assumptions see the helper gcamdata script for this purpose update_macro_productivity.R.

External Inputs

Description

Table 1: External inputs used for economics1

Name Description Type Source Resolution Unit / notes
Population, historical Historical population by country and year External data set Maddison and UN population inputs Country / region and year Thousands of people
Population, future SSP population projections used to extend historical population External data set SSP Scenario Explorer and GCAM SSP input files Country and year Thousands of people
GDP, historical Historical GDP by country External data set GCAMFAOSTAT GDP inputs Country and year Converted in gcamdata to million 1990 USD
GDP, future SSP GDP projections used to extend historical GDP External data set SSP Scenario Explorer and GCAM SSP input files Country and year Growth rates are used to extend historical GDP
National accounts GDP decomposition, capital stock, depreciation, labor compensation, capital compensation, saving rates, and related national-account variables External data sets Penn World Table v11.0 and Global Macro Database inputs Country / GCAM region and year Processed into GCAM regional macroeconomic accounts
Employment and labor data Employment data used for labor-market and sectoral labor processing External data sets ILO employment inputs, with additional sectoral information used in agricultural processing Country, sector, and year Thousand persons
GTAP value-share data Sectoral labor, capital, and value-share information used in macroeconomic and sectoral calibration External / prebuilt data GTAP-related socioeconomic inputs and PREBUILT_DATA Region, sector, and year Value shares and monetary values
Labor supply allocation Parameters used to allocate regional labor supply across agriculture and Materials Assumption file A_labor_supply_sector.csv GCAM region and sector Logit and allocation parameters
Materials production function Nested CES parameters for the Materials sector in GCAM-Macro Assumption file gcam_macro_nested_CES_function.csv GCAM region / production-function nest Elasticity and share-function parameters
Materials TFP Calibrated TFP parameters for GCAM-Macro open-GDP runs Assumption / calibrated input gcam_macro_TFP_open.csv GCAM region, scenario, and year Index, base year = 1
Income elasticities Income-elasticity assumptions for selected final-demand sectors Assumption files Processed through zsocio_L232.Inc_Elas_scenarios.R Sector, region, scenario, and year Elasticity


Input data processing

Historical population is processed from Maddison and UN population inputs in zsocio_L100.Population_hist.R. Future population is processed from the SSP database in zsocio_L100.SSP_database.R. The processed population data are then harmonized and extended in zsocio_L101.Population.R.

Historical GDP is processed from GCAMFAOSTAT GDP inputs in zsocio_L100.GDP_hist.R. Future GDP is processed from the SSP database and stitched to historical GDP in zsocio_L102.GDP.R. The same processing system also generates per-capita GDP and PPP/MER conversion factors used by GCAM.

National-account variables are processed primarily from Penn World Table v11.0 and the Global Macro Database in zsocio_L100.NationalAccounts.R, zsocio_L103.NationalAccounts.R, and zsocio_L203.NationalAccounts.R. These modules construct the national-account inputs used to calibrate GCAM-Macro, including capital stock, depreciation rates, labor and capital compensation, savings rates, capital net exports, factor productivity, and Materials-sector production-function parameters.

Employment and labor-market data are processed using ILO employment data and related mappings in zsocio_L100.Employment.R. With GCAM-Macro, total employment is used as a labor-supply constraint and is allocated between agriculture and the Materials sector. Labor-supply and scenario inputs are assembled in zsocio_L201.Pop_GDP_scenarios.R and written to the scenario-specific socioeconomic XML files in zsocio_xml_socioeconomics_SSP.R.

Socioeconomic XML outputs

The processed economy inputs are written to three groups of socioeconomic XML files.

Table 2: Main socioeconomic XML outputs used by GCAM

XML file(s) Main contents Processing module
socioeconomics_CORE.xml, socioeconomics_SSP1.xml, …, socioeconomics_SSP5.xml Population, GDP, PPP/MER conversion, total employment (Labor_Total), labor-force share, labor supply sectors, labor resource prices, and total factor productivity zsocio_xml_socioeconomics_SSP.R
socioeconomics_macro.xml National-account variables, savings-rate parameters, Materials-sector nested CES production-function inputs, factor productivity, tracking accounts, capital resources, and capital-link information zsocio_xml_socioeconomics_macro.R
socioeconomics_incelas_SSP1.xml, …, socioeconomics_incelas_SSP5.xml Income-elasticity assumptions for selected final-demand sectors zsocio_xml_socioeconomics_IncomeElasticity.R


The CORE socioeconomic XML uses the SSP2 population, GDP, and labor assumptions, but uses the CORE-specific calibrated TFP trajectory for GCAM-Macro reference calibration.

GTAP data (proprietary) is aggregated, processed (into value shares) and stored in PREBUILT_DATA.

GCAM-Macro-KLEAM extends the earlier GCAM-Macro KLEM structure by integrating agriculture with the macroeconomic accounting, labor-market, and savings-investment systems. As a result, the economy inputs now include labor-supply and labor-allocation information in addition to population and GDP. KLEAM also uses expanded national-account tracking and sectoral capital/investment information to support endogenous capital rental price feedbacks across Agriculture, Energy, and Materials.

Agricultural labor and capital inputs, agricultural productivity inputs, and sectoral capital tracking are described in the land, supply input, and economy pages. Additional details can be found in CMP-411.