Using the Jordan General Equilibrium model and inputs supplied by the Ministry of Planning
and International Cooperation (MOPIC), three scenarios are modelled. The first is a base case.
This is a business-as-usual projection for the Jordan economy in which there is no change to
current taxation arrangements. The remaining scenarios deviate from the first in response to
removing subsidies on electricity, food, water and public services starting in 2015 and
implemented fully by 2018. In the first of the alternative scenarios we remove only the
electricity subsidy, which is the largest. In the second scenario we remove all subsidies.
A brief general description of JorGE is given in Section 2. Section 3 contains a summary of key
aspects of the model’s database. Aspects of simulation design are given in Section 4. The effects
of subsidy removal are then discussed in Section 5, with results presented as deviations between
the values of variables with the subsidy (subsidies) removed and their values in the base case.