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WP 2011-1 CGE Applications in Development Economics

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Abstract

This paper begins with an informal history of developing country CGE models, going on to specification and closure, and finally describes a few models with financial extensions. Sectoral detail is central to CGE analysis, but after an initial sketch of an n-sector system most of the discussion focuses on the models' "closures" or patterns of macroeconomic causality, because they strongly influence their sectoral results. Particular attention is paid to the ways in which international trade and financial flows are fitted into applied models.

Suggested Citation

  • Lance Taylor, 2011. "WP 2011-1 CGE Applications in Development Economics," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2011-1, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
  • Handle: RePEc:epa:cepawp:2011-1
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    File URL: http://www.economicpolicyresearch.org/scepa/publications/workingpapers/2011/Taylor_WP_2011_1.pdf
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    Keywords

    development; developing countries; CGE models; international trade; financial flows; sector;

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