From an Abstract Economic Equilibrium Model to a Computable One for Policy Analysis

Abstract:     
While Computable General Equilibrium (CGE) Models have become a fundamental tool for practical analysis of policy alternatives, their implementation and functioning, still inaccessible for most economists and analysts. In our view interpretation of the original model, i.e, the Arrow-Debreu (AD) equilibrium model must be examined in a very detailed fashion with an empirical prospective of application. With this objective we offer a typical version of the AD model as a basis for the excess demand system of equations, to be solved with a conventional software.

Note: Downloadable document is in Spanish.

Number of Pages in PDF File: 27

Keywords: Empirical Modeling, Arrow-Debreu, Computational Economics, CGE, AGE

JEL Classification: D58, D61, E61, E62

working papers series