A good CGE modelers always checks the calibration of a CGE model using a simple trick: If you set the iteration limit of the model to zero and you try to solve the model, GAMS should find a solution if you correctly initialized and wrote down your model equations with the use of the benchmark data. Often, the calibration is not done properly and this can be seen (using the iteration set to zero) by looking at the infeasibilities of the equations and the variables.

If you use MPSGE to write down your model, the infeasibilities are easily interpreted. If … Read the rest “Looking for infeasibilities in Gams”