Handbook of Computable General Equilibrium Modeling

Edited by

  • Peter Dixon, Professor and Principal Researcher, Centre of Policy Studies, Monash University, Victoria, Australia
  • Dale Jorgenson, Professor of Economics, Harvard University, Cambridge Mass USA

In this collection of 17 articles, top scholars synthesize and analyze scholarship on this widely used tool of policy analysis, setting forth its accomplishments, difficulties, and means of implementation. Though CGE modeling does not play a prominent role in top US graduate schools, it is employed universally in the development of economic policy. This collection is particularly important because it presents a history of modeling applications and examines competing points of view.
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Audience

Graduate students and professors worldwide working in all subdisciplines of economics and finance.

 

Book information

  • Published: November 2012
  • Imprint: NORTH-HOLLAND
  • ISBN: 978-0-444-53634-1

Reviews

"The chapters in this volume address many of the most challenging economic policy issues facing both developed and developing countries and regions. The book is required reading for anyone wishing to understand the power and range of computable general equilibrium modelling as an input to strategy analysis and policy making."

--Larry Dwyer,  University of New South Wales

"The rich CGE applications presented in this volume show that CGE modeling is a vital tool for policy analysis.  These chapters will be valuable resources for students and scholars who are interested in new insights and developments."

--Jian Xie, The World Bank

"This volume is a clearly written, comprehensive review of the state of the art in CGE modeling, and will be of great value both to those who do CGE modeling and those who use CGE model results for policy analysis and evaluation."

--David G. Abler, Pennsylvania State University




Table of Contents

Section 1.  Overview

1. An introduction to CGE modeling

  Peter B. Dixon and Dale W. Jorgenson

Section 2.  Single-Country CGE Projects

2. The MONASH style of CGE modeling: a framework for hisorical, decomposition, forecast and policy simulations

  Peter B. Dixon, Robert B. Koopman and Maureen T. Rimmer

3. CGE assessments of fiscal sustainability in Norway

  Erling Holmoy

4. MAMS - a Computable General Equilibrium Model for Developing Country Strategy Analysis

  Hans Lofgren, Martin Cicowiez and Carolina Diaz-Bonilla

5. The contribution of CGE modeling to policy formulation in developing countries

  Sherman Robinson and Shantayanan Devarajan

6. Putting services and foreign direct investment into CGE models: reflections on the use of CGE models in policy discussions

  David Tarr

7. Regional CGE Modeling

  John R. Madden and James A. Giesecke

8. IGEM: a model of U.S. economic growth and the environment

  Dale W. Jorgenson, Peter Wilcoxen and Mun Ho

9. Energy and Environment Modeling in Australia

  Philip D. Adams and Brian R. Parmenter

10. Tax reform, the cost of capital, and U.S. economic growth

  Dale W. Jorgenson and Kun-Young Yun

11. Dynamic overlapping generations computational general equilibrium models               and the analysis of tax policy

  John W. Diamond and George R. Zodrow

Section 3.  Global CGE Projects

12. Applied General Equilibrium Analysis using the GTAP Framework

  Thomas Hertel

13. Estimating effects of price-distorting policies using alternative distortions databases 

  Kym Anderson, Will Martin and Dominique van der Mensbrugghe

14. Global Dynamic Scenarios-Structural and Environmental Implications

  Dominique van der Mensbrugghe

15. Energy and environment, a global approach: G-cubed

  Warwick J. McKibbin

16. Integrated economic and climate modeling 

  William Nordhaus

Section 4.  CGE Data, Parameter Estimation, Validation and Computation

17. An econometric approach to general equilibrium modeling

  Dale W. Jorgenson, Hui Jin and Daniel T. Slesnick

18. Trade Elasticity Parameters for a CGE Model

  Russell Hillberry and David Hummels

19. Validation of CGE models

  Peter B. Dixon and Maureen T. Rimmer

20. Solution Software for CGE Modeling

  Mark Horridge, Alex Meeraus, Ken Pearson and Thomas F, Rutherford

Section 5.  Advancing CGE Methodology

21. Income distribution and Computable General Equilibrium models: macro-  micro modelling

  Francois Bourguignon and Maurizio Bussolo

22. The New Keynesian approach to dynamic general equilibrium modeling: models, methods and macroeconomic policy evaluation

  Volker Wieland and Sebastian Schmidt

23. Computing general equilibrium theories of monopolistic competition and heterogeneous firms

  Edward J. Balistreri and Thomas F, Rutherford

24. Market Structure in CGE Models of International Trade

  Joseph Francois, Miriam Manchin and Will Martin

25. CGE modeling of trade in services

  Joseph Francois and Bernard Hoekman

26. Labor market modeling in a CGE context

  Stefan Boeters and Luc Savard

27. Aging and social insurance in a CGE framework (provisional title)

  Laurence Kotlikoff, Hans Fehr and Sabine Jokisch