GTAP Global Data in SALTER notation:-

As noted above, the GTAP data for version 2 of the database is held in SALTER notation. The form that this takes is as follows (note that ii is used as an alias for set i):-

Intermediate usage of domestic product, by commodity, industry and region.

DI02(i,ii,r,s) Intermediate usage of imports, by commodity, destination region and source region.

Investment usage of domestic product, by commodity and region. Investment usage of imports, by commodity, destination region and

source region.

DI05(i,r) Household consumpfion of domestic product, by commodity and

region.

Private household consumpfion of imports, by commodity. destination region and source region.

DI07(i,r) Government consumption of domestic product, by coinmodity and

region.

DI08(i,r,s) Government consumption of imports, by commodity,

region and source region.

Dll2(i,r) Non-commodity indirect taxes, by industry and region. DI13(i,r) Labour usage, by industry and region.

DI14(i,r) Capital usage, by industry and region. DI15(i,r) Land usage, by industry and region.

Tax on intermediate usage of domestic by commodity,

industry and region.

,ii,r) Tax on intermediate usage of imports, by commodity, industry and

importing region.

,r) Tax on private household consumption of domestic product, by commodity and region.

,r) Tax on private household consumpfion of by commodity

and importing region.

,r) Tax on investment usage of domestic by commodity and

region.

,r) Tax on investment usage of by commodity and importing

region.

,r) Tax on government consumption of domestic product, by commodity and region.

,r) Tax on government consumption of imports, by commodity and importing region.

,r,s) Export tax. by source region and destination region.

,r,s) Import by commodity, destination region and source region.

,r,s) International trade and transport margin, by commodity, destination region and source region'

DI32(i,r) Margin exports of trade and transport services.

Capital by region.

DI42(r) by region.

all cases, the commodities and regions in the descriptions above are in the order that they occur in the sets over which the parameter is defined. Taxes are all given in

value of tax payments so that the tax rate is found by dividing the tax by the

relevant parameter. DI17( DI18( DI21( DI22( DI23( DI27( DI31(

• the e-mail from Rob McDougal that these SALTER form of parameters, this commodity, and destination". Tests on the data proved that the source and destination were given the wrong way

There are several main points of difference between this form of parameters and the standard GTAP form:-

GTAP uses values at market and agents' prices, while the SALTER parameters use values (at market prices) and tax payments. The value at agents' prices is found by adding the tax payment to the value at market prices if the tax is paid for the

consumption of use of a good, and (in the case of the output tax and export tax

(D124)) by the tax payment from the value at market prices where the tax

is paid by the agent selling the good.

The SALTER data have no parameters defined over the set j, which is the combination of the i set and capital goods ("cgds"). Wherever a GTAP parameter is

over j, it can be found from SALTER parameters for i and investment (for "cgds") separately. For example, VDFM(i,j,r) can be found by the following assignments:

VDFM(i.ii,r) = D101(i,ii.r) VDFM(i,"cgds",r) DI05(i,r)

The SALTER data do not explicitly define any trade volume, but these can be found by working through the import demands. Since there are four forms of demand in the SALTER framework - intermediate demands, investment usage, private household demands and government demands - the value of imports at domestic market prices is:-

VIMS(i,r,s) = intermediate demand from DI02 + investment demand from DI04 + private demand from DI06 + government demand from DI08

The other GTAP trade parameters can be calculated from VIMS: VIWS(i,r,s) = VIMS(i,r,s) - import duty from DI27

VXWD(i,r,s) = VIWS(i,r,s) - transport margin from VXWD(i.r,s) - export duty from DI24

The SALTER data do not define regional savings. These are calculated as the residual between regional income and regional expenditure on private and government consumption.

Regional income = net factor income (D113 + D114 + D115 - D142)

+ tax (DI12 + D116 + DI17 + DI18 + D1I9 + DI20 + DI21

+ D122 + + D124 DI27)

Regional Expenditure private expenditure at agents' prices + D106 +

D118 + D119)

+ government expenditure at agents' prices (D107 + D108 + DI22 + DI23)

Care must be taken later when performing this calculation to in the case of

trade taxes especially, that the region receiving the tax revenue is credited correctly. When calculating savings as income minus expenditure, taxes on private and

consumption cancel out, so that savings equals:-

Savings= D113 + DI14 D115 - DI42 + DI12 + D116 + D117 D120 DI21 + D124 + DI27

- (DI05 + DI06 + D107 + DI08)

The SALTER parameters in some cases include more data than are necessary for use in GTAP. The largest parameter in this database is DI02, which is defined over(i,ii,r,s). With i and ii comprising 37 commodities and r and s 24 regions in the disaggregate database, the size of this parameter is 37x37x24x24 = 788,544 (which, since GEMPACK used 4 bytes of computer memory to store each point of data, uses just over 3 Mb of memory). The size of this parameter is the main source of problem when using GEMPACK software - it is simply too large. DI02 is needed to calculate

(imports at market prices) and (intermediate usage of and is

aggregated differently for each.