Abstract and Keywords
This chapter reviews recent applications of computable general equilibrium (CGE) modeling in the analysis and evaluation of policies that affect interactions among multiple markets. At the core of this research is a particular approach to the data and structural representations of the economy, elaborated through the device of a canonical static multiregional model. This template is adapted and extended to shed light on the structural and methodological foundations of simulating dynamic economies, incorporating “bottom-up” representations of discrete production activities, and modeling contemporary theories of international trade with monopolistic competition and heterogeneous firms. These techniques are motivated by policy applications including trade liberalization, development, energy policy and greenhouse gas mitigation, the impacts of climate change and natural disasters, and economic integration and liberalization of trade in services.
Keywords: computable general equilibrium, intertemporal CGE, multiregional CGE, policy modeling, calibration, policy evaluation, bottom-up top-down, climate change policy, heterogeneous firms, trade in services
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