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Recommended Readings -
CGE and Development Policy Modeling  (MPIA)

Contents

General Readings

Introductory reading for beginners in CGE and SAM
Applications: Text on specific topics, descriptions for interdisciplinary/non economist readers
Method: Text describing general modeling techniques 
Readings for advanced modelers in CGE 
Applications: on topics or study cases
Method: Text describing specific modeling techniques
Documentation: Description of larger applied CGE models/SAMs
SAM and multipliers
Macroclosures
Functional Forms
Programming with GAMS (or EViews)
CGE related Materials

Trade liberalization

Standard Trade CGE Models
Non Standard CGE Models
Multi-Country Models
Trade Liberalization, Poverty and Income Distribution
Trade Liberalisation and Labor Market

Poverty & Income Distribution Analysis

Analysing Macro-Poverty Linkages
Microsimulations
Reconciliation of household survey and national accounts data

Labour Market - Endogenous Labor

General readings

Labour Market - Exogenous Labor

Skilled vs. Unskilled
Men vs. Women
Formal vs. Informal
Public vs. Private
Rural vs. Urban
Agriculture vs. Non Agriculture
White vs. Black
Permanent Worker vs. Casual Worker vs. Family Worker

Labor Market Structure

Exogenous Wage setting
Minimum Wage
Efficiency Wage
Union and Wage Bargaining
Adjustment cost
Unemployment subsidy and reserve wage
Endogenous Labour - Others

Growth & Poverty

Growth and Poverty
Public Spending and Growth: CGE
Public Spending and Growth: non-CGE

Gender

Gender

Modeling the Agriculture

Modeling the Agricultural Sector

CGE applications on the Agricultural Sector

Productivity, production factors and labour
Poverty and household income
Markets and trade policies
GHG Mitigation, biofuels and iLUC
Climate Change

Environment

Natural resources
Fossil fuel

Additional information

To access references, which are not from this list, researchers may wish to try to contact the authors via Research Gate and request the documents directly from the authors. Researchers, who are part of PEP-financed teams can also use the IDRC online journal service.

 

General Readings  

Introductory readings for beginners in CGE and SAM

  • Bandara, J.S., 1991. Computable General Equilibrium Models for Development Policy Analysis in LDCs. Journal of Economic Surveys 5, 3–69. doi:10.1111/j.1467-6419.1991.tb00126.x
  • Burfisher, M.E., 2011. Introduction to Computable General Equilibrium Models. Cambridge University Press, New York.
  • Borges, A.M., 1986. Applied general equilibrium models : an assessment of their usefulness for policy analysis (OECD Economic Studies no. 7). OECD, Paris, France. Link to document
  • Cardenete, M.A., Guerra, A.-I., Sancho, F., 2012. Applied General Equilibrium: An Introduction, 1st ed. Springer.
  • Decaluwé, B., Martens, A., Savard, L., 2001. La politique économique du développement et les modèles d’équilibre général calculable: une introduction à l’application de l’analyse mésoéconomique aux pays en développement. PUM.
  • Devarajan, S., Go, D.S., Lewis, J.D., Robinson, S., 1997. Simple General Equilibrium Modeling, in: Francois, J.F., Reinert, K.A. (Eds.), Applied Methods for Trade Policy Analysis: A Handbook. Cambridge University Press, Cambridge, USA. Link to document
  • Devarajan, S., Robinson, S., 2002. The Impact of Computable General Equilibrium Models on Policy. Presented at the Frontiers in Applied General Equilibrium Modeling, Yale University, New Haven. Link to document
  • Fossati, A., Wiegard, W., 2014. Policy Evaluation with Computable General Equilibrium Models. Routledge Applied Economics, Routledge.
  • Gunning, W.J., Keyzer, M.A., 1995. Applied general equilibrium models for policy analysis, in: Handbook of Development Economics. Elsevier, pp. 2025–2107.
  • Hosoe, N., Gasawa, K., Hashimoto, H., 2010. Textbook of Computable General Equilibrium Modeling: Programming and Simulations. Palgrave Macmillan, Basingstoke.
  • Jones, R.W., 1965. The Structure of Simple General Equilibrium Models. The Journal of Political Economy 73, 557–572. Link to document
  • King, B., 1981. What is a SAM? A layman’s guide to social accounting matrices (No. Staff Working Paper No-463). The World Bank. Link to document
  • Moore, J.C., 2006. General Equilibrium and Welfare Economics: An Introduction. Springer Science & Business Media.
  • Piermartini, R., The, R., 2005. Demystifying Modelling Methods for Trade Policy (Discussion Paper No. 10). World Trade Organization, Geneva. Link to document
  • Quirk, J.P., Saposnik, R., 1968. Introduction to General Equilibrium Theory and Welfare Economics, ed. McGraw-Hill Inc., New York, USA.
  • Reinert, K.A., Roland-Holst, D.W., 1997. Social Accounting Matrices, in: Francois, J.F., Reinert, K.A. (Eds.), Applied Methods for Trade Policy Analysis: A Handbook. Cambridge University Press, Cambridge.
  • Sadoulet, E., Janvry, D.A., 1995. Computable General Equilibrium Models, in: Quantitative Development Policy Analysis. The Johns Hopkins University Press, Baltimore and London. Link to document
  • Shoven, J.B., Whalley, J., 1992a. Designing an applied general equilibrium model, in: Applying General Equilibrium. Cambridge University Press, Cambridge England ; New York, pp. 71–102.
  • Shoven, J.B., Whalley, J., 1992b. Using applied general equilibrium models, in: Applying General Equilibrium. Cambridge University Press, Cambridge England ; New York, pp. 103–133.
  • Taylor, L., 2016. CGE applications in development economics. Journal of Policy Modeling, Papers presented at the International Symposium in memory of Professor Leif Johansen 38, 495–514. doi:10.1016/j.jpolmod.2016.02.010. Link to working paper version
  • Wing, I.S., 2004. Computable general equilibrium models and their use in economy-wide policy analysis: Everything you ever wanted to know (but were afraid to ask) (Technical Note No. 6). Joint Program on the Science and Policy of Global Change, Cambridge, USA. Link to document

Applications: Text on specific topics, descriptions for interdisciplinary/non economist readers

  • Devarajan, S., Lewis, J., Robinson, S., 1990. Policy Lessons from Trade-Focused Two-Sector Models. Journal of Policy Modeling 12, 625–647. Link to document 
  • Francois, J.F., Reinert, K.A., 1997. Applied Methods for Trade policy Analysis: An Overview, in: Francois, J.F., Reinert, K.A. (Eds.), Applied Methods for Trade Policy Analysis: A Handbook. Cambridge University Press, Cambridge.
  • King, B., 1985. What is a SAM?, in: Pyatt, G., Round, J.I. (Eds.), Social Accounting Matrices: A Basis for Planning. The World Bank, Washington DC, USA. Link to document 
  • Robinson, S., Yunez-Naude, A., Hinojosa-Ojeda, R., Lewis, J.D., Devarajan, S., 1999. From stylized to applied models: Building multisector CGE models for policy analysis. The North American Journal of Economics and Finance 10, 5–38. Link to document
  • Shoven, J.B., Whalley, J., 1984. Applying General-Equilibrium Models of Taxation and International Trade: An Introduction Survey. Journal of Economic Literature 22, 1007–1051. Link to document
  • Tarr, D.G., 2014. Applied Trade Policy Modeling in 16 Countries: Insights and Impacts from World Bank CGE Based Projects. World Scientific Studies in International Economics 34, The World Bank, USA.
  • Wing, I.S., 2011. Computable General Equilibrium Models for the Analysis of Economy-Environment Interactions, in: Batabyal, A., Nijkamp, P. (Eds.), Research Tools in Natural Resource and Environmental Economics. World Scientific Publishing Co Pte Ltd, pp. 255–305. Link to document
  • Wing, I.S., 2009. Computable General Equilibrium models for the analysis of energy and climate policies, in: Evans, J., Hunt, L.C. (Eds.), International Handbook on the Economics of Energy. Edward Elgar Publishing, p. 332ff. Link to document

Method: Text describing general modeling techniques

  • Breisinger, C., Thomas, M., Thurlow, J., 2010. Social accounting matrices and multiplier analysis - An introduction with exercises, Food Security in Practice technical guide 5. International Food Policy Research Institute, Washington DC, USA. Link to document
  • Decaluwé, B., Lemelin, A., Robichaud, V., Maisonnave, H., 2013. PEP-1-1: The  PEP  standard  single-country,  static CGE model. PEP, Université Laval, Québec, Canada. Link to document
  • Ginsburgh, V., Keyzer, M., 2002. The Structure of Applied General Equilibrium Models. MIT Press.
  • Lofgren, H., 2003. Exercises in General Equilibrium Modeling Using GAMS. International Food Policy Research Institute, Washington DC, USA. Link to document
  • Lofgren, H., Harris, R.L., Robinson, S., 2002. A Standard Computable General Equilibrium (Cge) Model in Gams, Pap/Cdr. ed. Intl Food Policy Research Inst, Washington, D.C. Link to document
  • Maisonnave, H., Decaluwé, B., Robichaud, V., Lemelin, A., 2016. Debugator. Poverty and Economic Policy (PEP) Research Network. Link to document

Readings for advanced modelers in CGE

  • André, F.J., Cardenete, M.A., Romero, C., 2010. Designing Public Policies: An Approach Based on Multi-Criteria Analysis and Computable General Equilibrium Modeling. Springer-Verlag Berlin and Heidelberg GmbH & Co. K, Berlin ; New York : Bilbao, Spain.
  • André, F.J., Cardenete, M.A., Romero, C., 2010. Economic Policy Using Applied General Equilibrium Models: An Overview. Lecture Notes in Economics and Mathematical Systems 642, 9–31.
  • Dervis, K., Melo, J.D., Robinson, S., 1982. General equilibrium models for development policy. Cambridge University Press, New York, USA. Link to document
  • Dixon, P.B., Jorgenson, D., 2012a. Handbook of Computable General Equilibrium Modeling. North Holland, Amsterdam.
  • Dixon, P.B., Jorgenson, D., 2012b. Handbook of Computable General Equilibrium Modeling - Volume 1A. North Holland, Amsterdam.
  • Doi, M., 2006. Computable general equilibrium approaches in urban and regional policy studies. World Scientific Publishing Co Pte Ltd, Hackensack New Jersey.
  • Gilbert, J., Beladi, H., Choi, K., 2010. New Developments in Computable General Equilibrium Analysis for Trade Policy. Emerald Group Publishing Limited, Bingley.
  • Goswami, A., Mishra, A., 2016. Economic Modeling, Analysis, and Policy for Sustainability. Business Science Reference an Imprint of Igi Global, Hershey, PA.
  • Kehoe, P.J., Kehoe, T.J., 1994. A Primer on Static Applied General Equilibrium Models. Federal Reserve Bank of Minneapolis Quarterly Review 18, 2–16. Link to document
  • Kehoe, T.J., Prescott, E.C., 1995. Introduction to the Symposion: The discipline of applied general equilibrium. Economic Theory 6, 1–11. Link to document
  • Melo, J.D., 2015. Modeling Developing Countries’ Policies In General Equilibrium. World Scientific Studies in International Economics 41.
  • Scarf, H.E., Shoven, J.B., 2008. Applied General Equilibrium Analysis, 1 edition. ed. Cambridge University Press, Cambridge.

Applications: on topics or study cases

  • Adelman, I., Robinson, S., 1978. Income Distribution Policy in Developing Countries: A Case Study of Korea. Stanford University Press and The World Bank, Oxford, UK and Washington DC, USA.
  • Ballard, C., Fullerton, D., Shoven, J.B., Whalley, J., 1985. A General Equilibrium Model for Tax Policy Evaluation (NBER Books). National Bureau of Economic Research, Inc. Elixmann, D., 1982. Tax Incidence: A General Equilibrium Approach. Zeitschrift für Nationalökonomie / Journal of Economics 42, 423–425.
  • Hertel, T. (Ed.), 1998. Global Trade Analysis: Modeling and Applications. Cambridge University Press, Cambridge,  USA. Link to document
  • Hosoe, N., Gasawa, K., Hashimoto, H., 2010. Textbook of Computable General Equilibrium Modeling: Programming and Simulations. Palgrave Macmillan, Basingstoke.
  • Johansen, L., 1974. A multi-sectoral study of economic growth. North-Holland Pub. Co.
  • Melo, J.D., Tarr, D., 2008. A General Equilibrium Analysis of U.S. Foreign Trade Policy. The MIT Press.

Method: Text describing specific modeling techniques

  • Dixon, P.B., 1991. The Mathematical Programming Approach to Applied General Equilibrium Modelling: Notes and Problems. Centre  of  Policy  Studies Monash  University, Monash, Australia. Link to document
  • Dixon, P.B., Parmenter, B., Powell, A., 1992. Notes and Problems in Applied General Equilibrium Economics, 1st ed. North Holland.
  • Shoven, J.B., Whalley, J., 1992. Designing an applied general equilibrium model, in: Applying General Equilibrium. Cambridge University Press, Cambridge England ; New York, pp. 71–102.
  • Taylor, L., 2016. CGE applications in development economics. Journal of Policy Modeling, Papers presented at the International Symposium in memory of Professor Leif Johansen 38, 495–514. doi:10.1016/j.jpolmod.2016.02.010. Link to document
  • Taylor, L. (Ed.), 1990. Structuralist CGE Models, in: Socially Relevant Policy Analysis: Structuralist Computable General Equilibrium Models for the Developing World. The MIT Press, Cambridge, Mass, pp. 1–70.

Documentation: Description of larger applied CGE models/SAMs

  • Decaluwé, B., Lemelin, A., Robichaud, V., Maisonnave, H., 2013. PEP-1-t:  The  PEP  standard  single-country, recursive dynamic CGE model. PEP, Université Laval, Québec, Canada. Link to document
  • Diao, X., Thurlow, J., 2012. A Recursive Dynamic Computable  General Equilibrium Model, in: Diao, X., Thurlow, J., Benin, S., Fan, S. (Eds.), Strategies and Priorities for African Agriculture Economywide Perspectives from Country Studies. International Food Policy Research Institute, Washington DC, USA, pp. 17–50. Link to document
  • Dixon, P.B., Parmenter, B., Sutton, J., Vincent, D., 1982. ORANI, a multisectoral model of the Australian economy. North-Holland Pub. Co.
  • Dixon, P.B., Timmer, M.T. (Eds.), 2001. Dynamic General Equilibrium Modelling for Forecasting and Policy: A Practical Guide and Documentation of MONASH, Contributions to Economic Analysis. Emerald Group Publishing Limited.
  • Hertel, T.W., Tsigas, M.E., 1997. Structure of GTAP, in: Hertel, T.W. (Ed.), Global Trade Analysis: Modelling and Applications. Cambridge University Press, New York, USA. Link to document
  • Ianchovichina, E., McDougall, R., 2001. Theoretical Structure of Dynamic GTAP (GTAP Technical Paper No. 17). Link to document 
  • Lemelin, A., Robichaud, V., Decaluwé, B., 2014. PEP-w-fin: The PEP standard multi-region,  recursive dynamic world CGE model  with bilateral international  financial assets. PEP, Université Laval, Québec, Canada. Link to document
  • Lemelin, A., Robichaud, V., Decaluwé, B., Maisonnave, H., 2013. PEP-w-1: The PEP standard multi-region,  single-period world CGE model. PEP, Université Laval, Québec, Canada. Link to document
  • Lofgren, H., Harris, R.L., Robinson, S., 2002. A Standard Computable General Equilibrium (Cge) Model in Gams, Pap/Cdr. ed. Intl Food Policy Research Inst, Washington, D.C. Link to document
  • Morley, S., Piñeiro, V., 2013. A Regional Computable General Equilibrium Model for Honduras - Modeling Exogenous Shocks and Policy Alternatives (No. IFPRI Discussion Paper  01252). International Food Policy Research Institute, Washington DC, USA. Link to document
  • Robichaud, V., Lemelin, A., Decaluwé, B., Maisonnave, H., 2013. PEP-w-t: The PEP standard multi-region,  recursive dynamic world CGE model. PEP, Université Laval, Québec, Canada. Link to document
  • Walmsley, T.L., Dimaranan, B.V., McDougall, R.A., 2000. A Base Case Scenario for the Dynamic GTAP Model (No. GTAP Resource #417). Center for Global Trade Analysis, West Lafayette, USA. Link to document

SAM and multipliers

Macroclosures

  • Decaluwé, B., A. Martens and M. Monette, 1988, Macroclosures in Open Economy CGE Models: A numerical Reappraisal, International Journal of Development Planning Literature, 3(2), pp. 69-90.
  • Decaluwé, B., A. Martens and L. Savard, forthcoming, 2000, Macroclosure, chapter eight in La politique économique du développement et les modèles d'équilibre général calculable.
  • Dewatripont, M. and G. Michel, 1987, On Closure Rules, Homogeneity and Dynamics in Applied General Equilibrium Models, Journal of Development Economics, 26, pp. 65-76.

Functional Forms

Programming with GAMS (or EViews)

CGE related Materials

Trade liberalization

Standard Trade CGE Models

Non Standard CGE Models

Multi-Country Models

Trade Liberalization, Poverty and Income Distribution

Trade Liberalisation and Labor Market

 

Poverty & Income Distribution Analysis

Analysing Macro-Poverty Linkages

Microsimulations

Reconciliation of household survey and national accounts data

Poverty & Income Distribution Effects of Trade Liberalization

 

Labour Market - Endogenous Labor

General readings

 

Labour Market - Exogenous Labor

Skilled vs. Unskilled

Men vs. Women

Formal vs. Informal

Public vs. Private

Rural vs. Urban

Agriculture vs. Non Agriculture

White vs. Black

Permanent Worker vs. Casual Worker vs. Family Worker

Labor Market Structure

Exogenous Wage setting

Minimum Wage

Efficiency Wage

Union and Wage Bargaining

Adjustment cost

Unemployment subsidy and reserve wage

Endogenous Labour - Others

 

Growth & Poverty

Growth and Poverty

Public Spending and Growth: CGE

Public Spending and Growth: non-CGE

 

Gender

Gender

 

Modeling the Agriculture

Modeling the Agricultural Sector

 

CGE applications on the Agricultural Sector

Productivity, production factors and labour

Poverty and household income

Markets and trade policies

GHG Mitigation, biofuels and iLUC

Climate Change

Environment

Natural resources

Fossil fuel

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