Introduction to Computable General Equilibrium (CGE) Modeling

Introduction to Computable General Equilibrium (CGE) Modeling

Objective of the course
The course is intended to introduce participants to static CGE models and GAMs software. The course include initial introduction to the database for the CGE; the aggregated Social Accounting Matrix (SAM). The SAM embraces the structure of the economy and the social-economic interlinkages between productive sectors, final demand agents and the global economy. The course uses hand-on step by step building of an open economy static CGE model from scratch. Accomplishing this course, allows the participants to proceed to the intermediate and advanced Dynamic CGE Model. The details of the course, include;

    • Introduction to CGE models (theory)
    • Empirical use of CGE models
    • Constructing CGE databases from SUT/SAM
    • Introduction to GAMS code language
    • Theoretical structure of CGE models
    • Empirical use of CGE models in world
    • Derivation of linear and non-linear blocks of a static CGE model
    • Calibration of CGE models
    • Solvers in GAMs for CGE models (MINOS, PATHNLP,  CONOPT and PATH)
    • Debugging of errors in CGE models
    • Hands-on step by step construction of a closed and open economy CGE
    • Importing data into CGE model from Excel
    • Policy simulation in an open economy static CGE
    • Interpretation of results and reporting formats

Mode of delivery
The course is delivered using hands-on exercises with expectations of each participants producing a standard small CGE model at the end of the training. The participants will be expected to work in teams though each of the participants is expected to have his/her own laptop and mouse. At the end of the course, each team is expected to make a presentation on the policy simulation undertaken. For the online option, each participant is expected to submit answers to assignments on time to allow the course end within the specified period as extension could come with facilitation costs. To apply for this course click here or send mail to apply@macrosolve.net or macrosolveinfo@gmail.com.