Introduction to Computable General Equilibrium Models

This intuitive, hands-on introduction to computable general equilibrium models (a tool used to support public policy making on issues including trade, climate change and taxation) will benefit students across a spectrum of economic studies, including international trade, environmental economics, macroeconomics, microeconomics, and public finance.

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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.