Handbook of Computable General Equilibrium Modeling book cover

Handbook of Computable General Equilibrium Modeling

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.


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

Hardbound, 1056 Pages

Published: November 2012

Imprint: North-holland

ISBN: 978-0-444-59556-0


  • "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 -- Laurence Kotlikoff, Hans Fehr and Sabine Jokisch


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