Handbook of Computable General Equilibrium Modeling book cover

Handbook of Computable General Equilibrium Modeling

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.


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

Hardbound, 888 Pages

Published: November 2012

Imprint: North-holland

ISBN: 978-0-444-53634-1


  • "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


  • 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


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