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Computation

In: Textbook of Computable General Equilibrium Modelling

Author

Listed:
  • Nobuhiro Hosoe
  • Kenji Gasawa
  • Hideo Hashimoto

Abstract

Chapter 2 provided a mathematical presentation of the ‘simple CGE model’ with its theoretical underpinnings based in standard microeconomics. However, the general equilibrium of an economy cannot be ‘computed’ only with this mathematical model. The CGE modelling needs two more steps. The first step is to prepare a computer program of the CGE model, using GAMS syntax. This step is covered in this chapter. The second step is to construct a social accounting matrix (SAM) on the basis of empirical data and then to estimate coefficients and exogenous variables such as the share coefficient of the utility function ± i and the factor endowments FF h . This second step is discussed in Chapters 4 and 5.

Suggested Citation

  • Nobuhiro Hosoe & Kenji Gasawa & Hideo Hashimoto, 2010. "Computation," Palgrave Macmillan Books, in: Textbook of Computable General Equilibrium Modelling, chapter 3, pages 23-40, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-28165-3_3
    DOI: 10.1057/9780230281653_3
    as

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