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2.1.3 Proportion Parameters of the Demand Module
The proportion parameters of the demand module mainly involve the consumption
demand for different products, investment demand, land demand and demand for other
factors of economic entities (government and residents). Government consumption
should strictly conform to the implemented financial budget in the model. μ c (t) is
the proportion of the expense of the product c account in total government expendi-
tures, and α c (t) is the proportion of the expense of consumer good c in total household
expenditures.
2.1.4 Parameters of the Product Price Module
The price of the product is directly related to the type of production function selected in
the production module. In the top-level nest of the CGELUC model, the Leontief linear
production function is adopted. The amount of intermediate inputs in the final products
will directly affect the price of the final product.
2.2 Subdivision of the Macroscopic SAM
The macroscopic SAM is subdivided into subaccounts. The setting of the subaccounts
often differs in countries and has no standard form. This is because (i) the statistical
bases and availability of data differ in countries, and (ii) the purposes of policy analysis
and forms of established economic models vary, which results in different requirements
for subdivision levels.
There is a method always available to subdivide an account. The first is to subdivide
the entire economic class into unit classes. The activity account and the product account
are first subdivided according to industrial and product sectors, respectively, which
stand for the input-output relationship of production. Consequently, some regard the
SAM as an extension of an input-output table. After the activity and product accounts
are subdivided, the factors are then subdivided into labor, capital and land. The busi-
ness account is then subdivided. Finally, the enterprises are subdivided into
state-owned enterprises, shareholding enterprises and foreign-owned enterprises ac-
cording to ownership, or large-scale enterprises, medium-scale enterprises and
small-scale enterprises according to size.
In the compilation of SAM, a disaggregated SAM is obtained by combining the two
methods, subdividing the industrial activity and kinds of products and incorporating the
macroscopic economic data with the subdivided data of relevant institutions.
The disaggregated SAM, which includes the relationships between product activities
and transactions among sectors at the sector level, is ideal to describe mid-level eco-
nomic flows and can provide large amounts of valuable data for policy analysis and
model building.
3 Summary
Economic activities are the main driving factors behind structural changes in land use
and are also constrained by the structure of regional land use. The CGELUC model
analyzes factors that influence the types of regional land use based on macroscopic
quantitative analysis, reveals relationships between economic variables and changes in
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