CEPII, Recherche et Expertise sur l'economie mondiale

MIRAGE (Modelling International Relationships in Applied General Equilibrium) is a multi-sectoral and multi-regional computable general equilibrium model dedicated to trade policy analysis. It encompasses insights of imperfect competition, product differentiation by quality and origin, as well as foreign direct investment in a sequential dynamic framework where installed capital is immobile. Adjustment inertial come from reallocation of the stock of capital via depreciation and investment. MIRAGE relies on a very detailed measure of bilateral protection and trade barriers thanks to the MAcMap database.

The CEPII is also developping an updated version of the model, called MIRAGE-e, which includes a more detailed description of energy consumption and CO2 emissions, as well as a new baseline scenario at the 2100 horizon based on MaGE growth model.
 Methodology: a Short Description
In the perfect competition version of MIRAGE, each sector is modeled as a representative firm, which combines value-added and intermediate consumption in fixed shares. All primary factors endowments of countries are supposed to be fully employed and their growth rates are set exogenously.

The demand side is modeled through a representative consumer from each region that maximizes its intratemporal utility function under its budget constraint. This unique agent, which includes households and government, saves a part of his income and the rest is spent on commodities according to a LES-CES function.


Reference document to mention
  > Decreux, Y. and Valin, H. (2007) "MIRAGE, Updated Version of the Model for Trade Policy Analysis with a Focus on Agriculture and Dynamics", CEPII Working Paper no. 2007-15.

  > Bchir, M.-H., Y. Decreux, J.-L. Guérin and S. Jean (2002) "MIRAGE, A CGE Model for Trade Policy Analysis", CEPII Working Paper 2002-17. 

  > Bchir, M-H., Y. Decreux, J.-L. Guérin and S. Jean (2002), "MIRAGE, un modèle d’équilibre général calculable pour l’évaluation des politiques commerciales", Economie internationale, No. 89-90.

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Jean Fouré