Debunking the Myths of Computable General Equilibrium Models

March 3, 2008

Computable General Equilibrium (CGE) models are one of the most utilized tools for development planning and macro policy analysis.

Despite this, their history is not available in the literature, their theoretical grounding is never explained, and the mechanics of the models remain hidden under layers of rhetoric, myths and hand gestures at various theoretical structures. This paper explains what CGE models are, how they work, and where they came from.

Author: Benjamin H. Mitra-Kahn  
Download PDF