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 16 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: 978-0-444-59556-0

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 -- Laurence Kotlikoff, Hans Fehr and Sabine Jokisch