Computable general equilibrium models for economic policy evaluation and economic consequence analysis
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Accepted manuscript
Date
2018-02-09
Authors
Sue Wing, Ian
Balistreri, Edward
Version
Embargo Date
2020-05-21
OA Version
Accepted manuscript
Citation
Sue Wing, Edward Balistreri. 2018. "Computable General Equilibrium Models for Economic Policy Evaluation and Economic Consequence Analysis." In Oxford University Press Handbook on Computational Economics and Finance. Editors: Chen, Shu-Heng, Du, Ye Rong, Kaboudan, Mak. Oxford University Press. https://doi.org/10.1093/oxfordhb/9780199844371.013.7
Abstract
This chapter reviews recent applications of computable general equilibrium (CGE) modeling in the analysis and evaluation of policies which affect interactions among multiple markets. At the core of this research is a particular approach to the data and structural representations of the economy, which we elaborate through the device of a canonical static multiregional model. We adapt and extend this template to shed light on the structural and methodological foundations of simulating dynamic economies, incorporating “bottom-up” representations of discrete production activities, and modeling contemporary theories of international trade with monopolistic competition and heterogeneous firms. These techniques are motivated by policy applications including trade liberalization, development, energy policy and greenhouse gas mitigation, the impacts of climate change and natural disasters, and economic integration and liberalization of trade in services.
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Reproduced by permission of Oxford University Press, https://global.oup.com/academic/?lang=en&cc=gb