KITE KITE logo

Version License: GPL-3 R >= 3.5.0

KITE is an open-source framework for quantitative trade-policy counterfactuals, developed at the Kiel Institute for the World Economy. It implements general-equilibrium trade models in the New Quantitative Trade Model tradition and solves them in changes with exact hat algebra: you supply a baseline and a policy scenario (tariffs, non-tariff measures, carbon taxes), and KITE returns the counterfactual changes in welfare, production, and trade flows.

Website: kite-model.org · Try it in the browser: kite-model.org/lab

Install 

# install.packages("remotes")
remotes::install_github("julianhinz/KITE")

Requires R >= 3.5.0. Imports data.table and cli.

Quick start

The package ships a complete synthetic end-to-end example (3 countries, 2 sectors, a 20% bilateral tariff war, and a carbon tax in a climate club with border carbon adjustment), which runs all shipped models:

library(KITE)

Sys.setenv(KITE_RUN_EXAMPLE = "1")
source(system.file("examples", "example.R", package = "KITE"))

Expected output:

CP2015 converged in 22 iterations (criterion = 9.757296e-05 ).
CHKW2022 converged in 25 iterations (criterion = 8.113305e-05 ).
MW2021 converged in 21 iterations (criterion = 9.971478e-05 ).

The example builds initial conditions from scratch, defines a tariff scenario, calls update_equilibrium(), and summarises the result with process_results(). Open the file itself as a template for your own scenarios. trade_elasticity uses the positive Fréchet parameter () (typically around 4–6); KITE detects older inverse or negative conventions and converts them with a warning.

Models

Function Model Reference
caliendo_parro_2015 Multi-sector Ricardian model with input–output linkages Caliendo & Parro (2015), Review of Economic Studies
chowdhry_hinz_kamin_wanner_2022 Sanctions-coalition extension Chowdhry, Hinz, Kamin & Wanner (2024), Economic Policy — function name keeps the 2022 working-paper vintage
mahlkow_wanner_2021 Carbon tax in a climate club with border carbon adjustment (CBAM) and export rebates Mahlkow, Petersen & Wanner (2021), Wirtschaftsdienst 101(11), doi:10.1007/s10273-021-3048-5

These are the 3 models currently shipped in this package; more are coming. The full KITE suite behind the website comprises 13 models, available on request via kite@kielinstitut.de.

How it works

KITE models are multi-sector Ricardian general-equilibrium models with intra- and international input–output linkages, in the tradition of Eaton & Kortum (2002) and Caliendo & Parro (2015). Instead of solving levels, KITE solves in relative changes (“exact hat algebra”): observed baseline shares and a small set of elasticities are sufficient to compute the counterfactual equilibrium, with no need to estimate technology levels or trade costs. update_equilibrium() iterates the equilibrium conditions to convergence; process_results() turns the solution into welfare, production, and trade-flow changes. The KITE white paper describes the framework in detail.

Data

Public examples in this package are synthetic. Calibrated real-world baselines (trade and input–output data, elasticities) are not bundled; they are available on request via kite@kielinstitut.de.

Cite

Please cite the KITE white paper as the canonical reference, and the package as a software entry. citation("KITE") returns both; the same entries ship in BibTeX at system.file("KITE.bib", package = "KITE"):

@techreport{HinzMahlkowWanner2025,
  author      = {Hinz, Julian and Mahlkow, Hendrik and Wanner, Joschka},
  title       = {The {KITE} Model Suite: A Quantitative Framework for International Trade Analysis},
  institution = {Kiel Institute for the World Economy},
  type        = {KITE White Paper},
  year        = {2025},
  url         = {https://trade.kielinstitut.de/KTTM/KITE_whitepaper.pdf}
}

License

GPL-3 (see LICENSE). Alternative or commercial licensing terms are available on request via kite@kielinstitut.de.

Contact

General inquiries: kite@kielinstitut.de · Issues: github.com/julianhinz/KITE/issues