Computational General Equilibrium > What Is a CGE Model?

Multiple interacting agents

This distinguishes CGE models from computational macroeconomic models which usually have only one agent. Large CGE models can have dozens or even hundreds of households and firms.
Provides a lot of detail and allows analysis of narrow policies that affect small segments of the economy.
A high level of detail makes the models harder to parameterize and solve.
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Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 11/29/2003