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GENERAL EQUILIBRIUM EVALUATION OF MACRO-ECONOMIC AND TRADE POLICIES THE AIM OF A CGE MODEL To offer a soundanalyticframework for ex anteevaluation of economicpolicies, based on : ,[object Object]

Economic agents (households, firms, governments and the rest of the world)

An economy or a region

At a given momentECOPA isahigh-level expert in CGE: ,[object Object]

Utilisation

And interpretationCopyright © ECOPA 2009 1

GENERAL EQUILIBRIUM EVALUATION OF MACRO-ECONOMIC AND TRADE POLICIES CGE MODELING REQUIRES A THOROUGH KNOWLEDGE OF ,[object Object]

General equilibrium micro-economic techniques

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Corrprate Tax English

1.

2. Economic agents (households, firms, governments and the rest of the world)

3. An economy or a region

4.

6. And interpretationCopyright © ECOPA 2009 1

7.

8. General equilibrium micro-economic techniques

9. Estimation of demand functions

10. Labour market modelling

11. Numerical optimisation software such as GAMSCopyright © ECOPA 2009 2

12. CGE MODEL Copyright © ECOPA 2009 3 GENERAL EQUILIBRIUM EVALUATION OF MACRO-ECONOMIC AND TRADE POLICIES

13. 4 GENERAL EQUILIBRIUM EVALUATION OF MACRO-ECONOMIC AND TRADE POLICIES EXAMPLE USING A CGE MODEL (ii) Whenthese relations are disturbed by : CGE Modelsdetermine a pricevector capable of restoring a new generalequilibriumbased on the agents’ optimal behaviour. A new economicpolicy An exogenouseconomicshock Copyright © ECOPA 2009

14.

15. Budget constraints (government budget, household budget, etc.)

16. As well as their interactionsCopyright © ECOPA 2009 5

17.

18. customs and fiscal policies

19. government redistribution policies

20. the impact of a supply and demandshock

21. Can include a micro-simulation model, enabling the analysis of :

22. aggregateeffects of economicpolicies

23. and its distributive effects Copyright © ECOPA 2009 6

24.

25.