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General equilibrium modelling: The state of the art

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  • Shobande, Olatunji
  • Uddin, Godwin
  • Ashogbon, Festus

Abstract

The general equilibrium approach's theoretical superiority has always been accepted in economic literature, as a robust, complete, and detailed general temporal equilibrium model that shows how money, production, saving level, capital goods and services prices, and the interest rate are jointly determined. This article is a time-path exploration of the literature on propositions related to general equilibrium modelling, and a highlight of its contemporary relevance. Over time and till now, the Walras’ proposition at best takes primacy, amidst others, and improvements in the development of sophisticated sub-models of asset markets within the general equilibrium framework had meant substantial progress since this permit analysis under more realistic conditions. However, limitations are clear, and steady advances in the model can better improve its application.

Suggested Citation

  • Shobande, Olatunji & Uddin, Godwin & Ashogbon, Festus, 2020. "General equilibrium modelling: The state of the art," MPRA Paper 105081, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:105081
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    References listed on IDEAS

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    1. Wendner, Ronald, 1999. "A Calibration Procedure of Dynamic CGE Models for Non-steady State Situations Using GEMPACK," Computational Economics, Springer;Society for Computational Economics, vol. 13(3), pages 265-287, June.
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    3. Francisco J. André & M. Alejandro Cardenete & Carlos Romero, 2010. "Economic Policy Using Applied General Equilibrium Models: An Overview," Lecture Notes in Economics and Mathematical Systems, in: Designing Public Policies, chapter 0, pages 9-31, Springer.
    4. Francisco J. André & M. Alejandro Cardenete & Carlos Romero, 2010. "Designing Public Policies," Lecture Notes in Economics and Mathematical Systems, Springer, number 978-3-642-12183-8, October.
    5. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521319867.
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    More about this item

    Keywords

    general equilibrium modelling; equilibrium; market; static; model;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D10 - Microeconomics - - Household Behavior - - - General
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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