Admin What is a CGE model?
A CGE model is a large system of simultaneous non-linear equations – to solve it presents a considerable computational challenge. Hence, early CGE modelers were, perforce, amateur practitioners in the field of numerical algorithms. During the 1970s several approaches contended, including:
Can a CGE model be recast as a single optimization problem?
Programming approaches, motivated by the wide success of the Simplex algorithm and by the idea that a CGE model can be recast as a single-optimand optimization problem.
Are regional CGE models static or dynamic?
Most regional CGE models have been comparative static, but as with their national counterparts, there has been a move in regional CGE models towards a dynamic specification. Examples are the AMOS model (see, e.g. McGregor et al., 1996) and the multiregional model of Korea by Kim and Kim (2003).