What is CGE used for?
CGE models fit economic data to a set of equations which aim to capture the structure of the economy and behavioural response of agents (firms, households, government). This provides a framework to simulate policy changes and trace the impact on key economic variables, including income and expenditure flows.
What is CGE course?
This one-week intensive course will introduces participants to the equations and data structure of TERM — a multiregional CGE model of a single country — and provides them with extensive hands-on experience with the GEMPACK software used to solve CGE models.
What is Gempack software?
GEMPACK (General Equilibrium Modelling PACKage) is a suite of economic modelling software developed at the Centre of Policy Studies. It is designed to solve computable general equilibrium (CGE) models and is used in over 400 other locations in 60 countries.
When was CGE created?
Perhaps the first CGE model similar to those of today was that of Taylor and Black (1974).
What is the difference between DSGE and CGE?
The main difference between the two types of model is DSGE models attempts to capture fluctuations in business cycles whereas CGE models tend to focus more on medium-run and long-run macroeconomic analysis. Standard DSGE models also tend to have less detailed representation of firms and households than CGE models.
What does Dsge stand for?
Dynamic stochastic general equilibrium modeling
Dynamic stochastic general equilibrium modeling (abbreviated as DSGE, or DGE, or sometimes SDGE) is a macroeconomic method which is often employed by monetary and fiscal authorities for policy analysis, explaining historical time-series data, as well as future forecasting purposes.
Why are CGE models not suitable for forecasting?
CGE models are not designed as forecasting models – they are normally based on trend growth assumptions, so they do not take into account any short-term fluctuations in spare capacity associated with the current economic cycle.
Why do we use DSGE models?
A central challenge facing policymakers is how to assess the relative strength of those forces. Economists have a range of tools that can be used to make such assessments. Dynamic stochastic general equilibrium (DSGE) models are the leading tool for making such assessments in an open and transparent manner.
What is the general equilibrium equation?
The price at which Qd = Qs is the equilibrium price. At such a price there is neither excess demand nor excess supply. (The latter is often called negative excess demand.) Thus an equilibrium price can be defined as the price at which the excess demand is zero the market is cleared and there is no excess demand.
How does a DSGE model work?
Dynamic stochastic general equilibrium (DSGE) models use modern macroeconomic theory to explain and predict comovements of aggregate time series over the business cycle and to perform policy analysis.
What is meant by general equilibrium?
General equilibrium shows how supply and demand interact and tend toward a balance in an economy of multiple markets working at once. The balance of competing levels of supply and demand in different markets ultimately creates a price equilibrium.
What is partial and general equilibrium?
1. Partial equilibrium means an equilibrium derived by considering the effect of only two variables at a time. All other variables are considered to be constant. General equilibrium means an equilibrium which is derived by considering the effect of many variables at a time. 2.
Which CGE models can be solved using GEMPACK?
Some of the more well-known CGE models solved using GEMPACK are the GTAP model of world trade, and the MONASH, MMRF, ORANI -G and TERM models used at CoPS. All these models share a distinctive feature: they are formulated as a system of differential equations in percentage change form; however, this is not required by GEMPACK.
What is the history of GEMPACK?
GEMPACK was first unveiled to the public at a training course, based on the ORANI model, run in 1984 at Melbourne University. At this point GEMPACK would only run on VAX computers — so there were no Windows programs such as ViewHAR or TABmate.
What are the features of GEMPACK?
All features (basic and advanced) are fully documented. Detailed instructions (including many hands-on examples) help new users to get started. GEMPACK Windows programs help you visualize and explore code, data and results. GEMPACK contains powerful capabilities for solving recursive-dynamic and fully-intertemporal models.
What courses are available in GEMPACK?
Short courses in Advanced GEMPACK use are also regularly offered. The Practical GE Modelling one-week intensive course introduces participants to practical applied general equilibrium (GE) modelling, and to the GEMPACK software used to solve equilibrium models. In particular the course covers the ORANI-G model of the Australian economy.