PEP Standard Computable General Equilibrium (CGE) Models

Macro-micro development policy modeling group assists developing country researchers in constructing models of their national economy to simulate the impact of macroeconomic shocks/policies on various dimensions of poverty and welfare. To do so, it applies a combination of macro-micro modelling and simulation techniques including, for the macroeconomic level approach, a Computable General Equilibrium (CGE) framework. CGE models account for the structural aspects of a country’s economy, i.e. the interactions among sectors and institutions, and their links with the global economy.