General Equilibrium

2. Economic agents (households, firms, governments and the rest of the world)

3. An economy or a region

5. Utilisation

6. And interpretationCopyright © ECOPA 2009 1

8. General equilibrium micro-economic techniques

9. Estimation of demand functions

10. Labour market modelling

11. Numerical optimisation software such as GAMSCopyright © ECOPA 2009 2

12. CGE MODEL Copyright © ECOPA 2009 3 GENERAL EQUILIBRIUM EVALUATION OF MACRO-ECONOMIC AND TRADE POLICIES

13. 4 GENERAL EQUILIBRIUM EVALUATION OF MACRO-ECONOMIC AND TRADE POLICIES EXAMPLE USING A CGE MODEL (ii) Whenthese relations are disturbed by : CGE Modelsdetermine a pricevector capable of restoring a new generalequilibriumbased on the agents’ optimal behaviour. A new economicpolicy An exogenouseconomicshock Copyright © ECOPA 2009

15. Budget constraints (government budget, household budget, etc.)

16. As well as their interactionsCopyright © ECOPA 2009 5

18. customs and fiscal policies

19. government redistribution policies

20. the impact of a supply and demandshock

21. Can include a micro-simulation model, enabling the analysis of :

22. aggregateeffects of economicpolicies

23. and its distributive effects Copyright © ECOPA 2009 6