This book adopts a typical textbook approach and format for CGE beginners to learn and master the subject. It explains the economics theory behind the CGE models. The learning proceeds step by step from basic economic theories to advanced topics, from simple to more comprehensive CGE structures along with the corresponding computer programs. Each chapter reviews relevant economic theories; illustrates new material with examples, diagrams and exercises; and provides the mathematical models along with the GAMS computer programing codes. At the end of a chapter, exercises are assigned for practice and enhancing understanding.
GAMS programs (55 KB)
Sample Chapter(s)
Preface
Chapter 1: Introduction
Contents:
Readership: It is a textbook for MA and PhD level students/courses in economics, public policy, environmental sciences, business, agricultural sciences, economic and development planning, and regional science. It can also be a self-learning or a reference book for scholars and researchers in the above areas.
"This book systematically introduces the theory and programming of CGE models in a simple, intuitive, and easy-to-operate manner for graduate students and public policy scholars. It not only covers the basic economic concepts and technical skills (including data assembling and GAMS programming), but also alternative specifications and extensions to CGE modeling. I expect it to become a standard reference of CGE modeling."
Zhi Wang
George Mason University
"Economists with robust skills in CGE modeling are in high demand by governments and international organizations as the world is trying to find ways of addressing today's urgent systemic challenges, including climate change, poverty, and inequalities. This textbook promises to transform an economist without knowledge of the CGE field into one who understands the structures of standard models and their databases, and can apply them for policy analysis, adapting model structures and developing new databases when needed. This is a major feat. The book is pedagogical and comprehensive, providing detailed explanations, including examples and exercises in how to program the models in GAMS, a major software in this area of applied economics. The required background is a Master's or advanced undergraduate level in Economics with an interest in programming and quantitative analysis. For an economist with this background and the readiness to read and work through the programming exercises, it promises to have a high payoff, transforming theoretical knowledge of macro and microeconomics into knowledge that can be applied to help understand the tradeoffs between government actions that, in the context of fiscal constraints, address today's main policy challenges. The book is warmly recommended for economists who want to explore this field."
Hans Lofgren
Retired World Bank Senior Economist, PhD
Gene Chang is Professor Emeritus of University of Toledo, USA. He received BA from Fudan University, China; MA from UC Berkeley; and PhD in Economics from University of Michigan. He was the co-editor of China Economic Review and held research, visiting, teaching, or honorary positions at the World Bank, Harvard University, the Chinese University of Hong Kong, Fudan University, UIBE China, Shanghai University of Finance and Economics, and the University of Warsaw in Poland.