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This paper gives an introduction to computable general equilibrium (CGE) models. The paper focuses on static CGE-models - how they are constructed, calibrated and used for policy evaluation.
This paper gives an introduction to computable general equilibrium (CGE) models. The paper focuses on static CGE-models - how they are constructed, calibrated and used for policy evaluation. The paper also briefly presents the handful of models that at present are being used or are under development in Denmark. It is also discussed how the method differs from the traditional macroecenometric models, as well as the pros and cons of the approach.