Book Chapter

CHAPTER 1: Computable General Equilibrium Models: Historical Background and Basic Structure

Year:

2016

Published in:

World Scientific
computable general equilibrium
GE theory
modeling approach
development milestones
practical algorithm

This chapter contains a historical perspective of the roots of the computable general equilibrium (CGE) modeling. We discuss the connection of modeling approach to the general equilibrium (GE) theory and highlight the important links and differences. We also give an overview of the most important milestones in the development of the modeling tradition and then describe a practical algorithm that model-makers usually follow.

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