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In this collection of 17 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 U.S. 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.
In this collection of 17 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 U.S. 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.
These detailed surveys of major subjects in CGE modeling reveal the ways that this approach can inform real economic decision-making.
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 (provisional
title)
Laurence Kotlikoff, Hans Fehr and Sabine Jokisch
Sir John Monash Distinguished Professor, Centre of Policy Studies, Monash University, Australia Professor of Economics, Harvard University, Cambridge, Mass USA
"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
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