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Solution Software for Computable General Equilibrium Modeling

In: Handbook of Computable General Equilibrium Modeling

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  • Horridge, Mark
  • Meeraus, Alex
  • Pearson, Ken
  • Rutherford, Thomas F.

Abstract

We describe the progress of computable general equilibrium (CGE) modeling software since the 1980s and contrast the main systems used today: GAMS, MPSGE and GEMPACK. The development of these general-purpose modeling systems has underpinned rapid growth in the use of CGE models, and allowed models to be shared and their results replicated. We show how a very simple model may be implemented and solved in all three systems. We note that they produce the same numerical results but have different strengths. We conclude by considering some challenges for the future.

Suggested Citation

  • Horridge, Mark & Meeraus, Alex & Pearson, Ken & Rutherford, Thomas F., 2013. "Solution Software for Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1331-1381, Elsevier.
    • Handle: RePEc:eee:hacchp:v:1:y:2013:i:c:p:1331-1381
    DOI: 10.1016/B978-0-444-59568-3.00020-1
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    References listed on IDEAS

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    Cited by:

    1. Bohlmann, Jessika & Bohlmann, Heinrich & Inglesi-Lotz, Roula & van Heerden, Jan, 2016. "An economy-wide evaluation of new power generation in South Africa: The case of Medupi and Kusile," Energy Policy, Elsevier, vol. 97(C), pages 450-460.
    2. Boratyński, Jakub, 2021. "Decomposing structural decomposition: The role of changes in individual industry shares," Energy Economics, Elsevier, vol. 103(C).
    3. Erwin Corong & Thomas Hertel & Robert McDougall & Marinos Tsigas & Dominique van der Mensbrugghe, 2017. "The Standard GTAP Model, version 7," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 2(1), pages 1-119, June.
    4. Brita Bye & Taran Fæhn & Orvika Rosnes, 2015. "Residental energy efficiency and European carbon policies A CGE-analysis with bottom-up information on energy efficiency technologies," Discussion Papers 817, Statistics Norway, Research Department.
    5. Liu, Xianglong Locky & Nassios, Jason & Giesecke, James, 2024. "To tax or to spend? Modelling tax policy responses to oil price shocks," Energy Policy, Elsevier, vol. 185(C).
    6. An, Kangxin & Wang, Can & Cai, Wenjia, 2023. "Low-carbon technology diffusion and economic growth of China: an evolutionary general equilibrium framework," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 253-263.
    7. van der Mensbrugghe, Dominique, 2019. "The Standard GTAP Model in GAMS, Version 7.1," GTAP Working Papers 6825, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    8. van der Mensbrugghe, Dominique, 2019. "The Standard GTAP Model in GAMS, Version 7.1," GTAP Technical Papers 6825, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    9. Bekkers, Eddy, 2019. "The welfare effects of trade policy experiments in quantitative trade models: The role of solution methods and baseline calibration," WTO Staff Working Papers ERSD-2019-02, World Trade Organization (WTO), Economic Research and Statistics Division.
    10. Massiani, Jérôme, 2018. "Assessing the economic impact of mega events using Computable General Equilibrium models: Promises and compromises," Economic Modelling, Elsevier, vol. 75(C), pages 1-9.
    11. Peter Dixon, 2022. "H. David Evans, 1941-2022: Progenitor of Computable General Equilibrium Modelling in Australia," Centre of Policy Studies/IMPACT Centre Working Papers g-331, Victoria University, Centre of Policy Studies/IMPACT Centre.
    12. Jakub Boratyński & Jakub Borowski & Adam Czerniak & Dariusz Rosati, 2017. "The Balassa-Samuelson effect in CEE economies: a CGE analysis," EcoMod2017 10516, EcoMod.
    13. Van Ha, Pham & Kompas, Tom, 2016. "Solving intertemporal CGE models in parallel using a singly bordered block diagonal ordering technique," Economic Modelling, Elsevier, vol. 52(PA), pages 3-12.

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    More about this item

    Keywords

    CGE; software; GAMS; GEMPACK; MPSGE;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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