Introducing CGE Models to the Classroom Using Excel
39 Pages Posted: 16 Apr 2007
Date Written: April 9, 2007
This paper demonstrates how simple general equilibrium models can be solved with the help of Microsoft Excel. Two different general equilibrium models for tax incidence analysis are used as illustrative examples. The methods presented here are intended to be beneficial to both students and teachers working with general equilibrium theory in the classroom and can easily be extended to various policy analysis term projects. The techniques presented here are simple and effective tools for inclusion in any student's toolkit.
Keywords: Excel, Solver, General Equilibrium, Optimization, Newton's Method
JEL Classification: A22, A23, C61, D58
Suggested Citation: Suggested Citation