Advances in theoretical and computable general equilibrium modeling brought their conceptual foundations in line with standard microeconomic constructs. This reduced the theoretical and empirical gap between welfare measurements using a partial or a general equilibrium approach. However, the separation of the partial and general equilibrium literatures lingers in many applications which this ma...

This chapter is a simple, rigorous, practically-oriented exposition of computable general equilibrium (CGE) modeling. The general algebraic framework of a CGE model is developed from microeconomic fundamentals, and employed to illustrate (i) how a model may be calibrated using the economic data in a social accounting matrix, (ii) how the resulting system of numerical equations may be solved for...

Lance Taylor is the Director of the Schwartz Center for Economic Policy Analysis (SCEPA) and the Arnhold Professor of International Cooperation and Development at the New School for Social Research. Rudiger von Arnim is a Research Assistant. This SCEPA Policy Note is based on their 2006 paper for Oxfam International titled, “Modeling the Impact of Trade Liberalization: A Critique of Computable ...