Production technology in the CGE-model

Abstract

Firms in a given sector tries to maximize the discounted value of their dividends subject to the capital accumulation of real and book value capital and subject to the sector specific production function. We refer to this as the ’Firms problem’. Within that context, this note describes the production structure in the CGEmodel of GreenREFORM at the present stage of development. Production technology will be different in those sectors covered by sector specific models.