Introduction to Computable General Equilibrium Models

Up-to-date, hands-on introduction to computable general equilibrium models, also serving as a desk reference for experienced CGE modelers.

Mary E. Burfisher (Author)

9781108748025, Cambridge University Press

Paperback / softback, published 7 January 2021

500 pages
25.6 x 18 x 3 cm, 0.9 kg

'This 3rd edition of Mary E. Burfisher's book arrives at a moment when COVID-19 is highlighting that economic structure matters, that economies are complex linked systems both domestically and internationally, and that large shocks quickly propagate throughout the system. CGE models are essential tools for analyzing and understanding large economic shocks. This 3rd edition provides an accessible introduction to CGE models and the insights that they generate into many of the most important issues confronting the world today.' Channing Arndt, International Food Policy Research Institute

Computable general equilibrium (CGE) models play an important role in supporting public-policy making on such issues as trade, climate change and taxation. This significantly revised volume, keeping pace with the next-generation standard CGE model, is the only undergraduate-level introduction of its kind. The volume utilizes a graphical approach to explain the economic theory underlying a CGE model, and provides results from simple, small-scale CGE models to illustrate the links between theory and model outcomes. Its eleven hands-on exercises introduce modelling techniques that are applied to real-world economic problems. Students learn how to integrate their separate fields of economic study into a comprehensive, general equilibrium perspective as they develop their skills as producers or consumers of CGE-based analysis.

1. Introduction to Computable General Equilibrium Models
2. Elements of a Computable General Equilibrium Model
3. The CGE Model Database
4. Final Demand in a CGE Model
5. Supply in a CGE Model
6. Factors of Production in a CGE Model
7. Trade in a CGE Model
8. Taxes in a CGE Model
9. Regulations in a CGE Model
10. Conclusion: Frontiers in CGE Modeling.

Subject Areas: Econometrics [KCH], Monetary economics [KCBM], Macroeconomics [KCB], Economics, finance, business & management [K]