Introduction to Computable General Equilibrium Models

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.