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.
Advantages
Provides a lot of detail and allows analysis of narrow policies that affect small segments of the economy.
Disadvantages
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
