Computable general equilibrium, or CGE, is a well-established numerical simulation technique for evaluating the economy-wide effects of changes in an economic system. It has become very widely used throughout the economics discipline, but is perhaps employed most frequently in the analysis of changes in international trade policy, where changes in tariffs and other taxes are often large and almost always involve multiple sectors and/or regions simultaneously. CGE methods, while certainly not without their limitations, have proved very effective at tracking the myriad of feedback and flow-through effects associated with new regional trading agreements and multilateral trade reforms, and have provided a consistent mechanism of analyzing the effects of changes in trade policy and related areas on a diverse range of economic outcomes.
Gilbert, J. (2010), "Introduction", Gilbert, J. (Ed.) New Developments in Computable General Equilibrium Analysis for Trade Policy (Frontiers of Economics and Globalization, Vol. 7), Emerald Group Publishing Limited, Bingley, pp. xix-xxvi. https://doi.org/10.1108/S1574-8715(2010)0000007003Download as .RIS
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