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Computable General Equilibrium Modelling

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Listed:
  • Dixon, Peter B.
  • Parmenter, B.R.

Abstract

This paper reviews computable general equilibrium (CGE) modelling, taking as pathbreaking its starting point the contribution of Johansen (1960). It gives a brief history of the field; reviews solution procedures based on linear computations for single-period and multi-period models; sets out the theoretical structure, the data and some simulations from an illustrative model; and assesses the achievements, limitations and potential of the CGE field. The emphasis is on the role of CGE models in practical policy analysis and forecasting.

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Handle: RePEc:ags:copspp:266337
DOI: 10.22004/ag.econ.266337
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