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This not only makes the formulas more concise and clear but also facilitates the use of analytical tools from linear algebra and matrix theory. The John von Neumann's general equilibrium model and the structural equilibrium model are examples of matrix-form CGE models, which can be viewed as generalizations of eigenequations.
The working paper, "Debunking the Myths of Computable General Equilibrium Models", [7] provides both a history, and a readable theoretical analysis of what CGE models are, and are not. In particular, despite their name, CGE models use neither the Walrass general equilibrium, nor the Arrow-Debreus General Equilibrium frameworks.
SAMs form the backbone of computable general equilibrium (CGE) Models and various types of empirical multiplier models. Appropriately formatted SAMs depict the spending patterns of an economy, as with IMPLAN and RIMS II data, and can be used in economic impact analysis.
The structural equilibrium model is a matrix-form computable general equilibrium model in new structural economics. [30] [31] This model is an extension of the John von Neumann's general equilibrium model (see Computable general equilibrium for details). Its computation can be performed using the R package GE.
AGE models, being based on Arrow–Debreu general equilibrium theory, work in a different manner than CGE models.The model first establishes the existence of equilibrium through the standard Arrow–Debreu exposition, then inputs data into all the various sectors, and then applies Scarf’s algorithm (Scarf 1967a, 1967b and Scarf with Hansen 1973) to solve for a price vector that would clear ...
Peter Bishop Dixon AO FASSA (born 23 July 1946) [1] is an Australian economist known for his work in general equilibrium theory and computable general equilibrium models. [2] He has published several books and more than two hundred academic papers on economic modelling and economic policy analysis .
Input–output accounts are part and parcel to a more flexible form of modelling, computable general equilibrium models [a]. Two additional difficulties are of interest in transportation work. There is the question of substituting one input for another, and there is the question about the stability of coefficients as production increases or ...
A macroeconomic model is an analytical tool designed to describe the operation of the problems of economy of a country or a region. These models are usually designed to examine the comparative statics and dynamics of aggregate quantities such as the total amount of goods and services produced, total income earned, the level of employment of productive resources, and the level of prices.