12 de setembro de 2024|Evento

An Introduction to CGE Modeling is designed to introduce fundamental concepts and practices of tax and trade policy assessment. The primary tool used is Computable General Equilibrium (CGE) modelling. The workshop will be a brief introduction to the practice of economic impact analysis, and a presentation of how CGE models are used to provide evidence-based analysis for Caribbean countries. The presentations will explain standard economic theory behind general equilibrium and will provide examples of CGE applications for tax policy and international trade analysis.

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The most common CGE modelling software is GAMS/MPSGE. Several small examples, or “maquettes” will be used as exercises in order to provide an interactive experience with CGE modelling for the participants. Links to download GAMS/MPSGE will be provided. A restricted version of the software is available free of charge.

To finalize the workshop, two real-world models will be presented. One model designed for trade policy analysis; and another designed for tax policy analysis. These models are large and complex, so only selected policy experiments will be conducted during the workshop.

TRAINING OUTLINE

September 12, 2024:

Introductions and Overview of Economic Analysis using CGE

11:00 – 11:45	Presentation - What is a CGE Model? An overview and history of CGE models, in relation to other models. An itemization what they can (and cannot) be used for.
11:45 – 12:00:	Questions & Answers
12:00 – 1:00:	Interactive Demonstration: A 2x2x2 CGE Model and Tax Policy Experiment A simple CGE model is constructed on-site, and some basic economic analysis is done by the class.
1:00 – 1:30:	Real World: International Trade Example – Impact of an FTA We analyse the economic impact of a Free Trade Agreement, using a full-scale model, for a specific country in the Caribbean/Latin America.
1:30 – 2:00:	Real World: Tax Policy Example We use a CGE model to determine how taxes much change, in order to hit a specific revenue target – in the presence of tax avoidance. The deadweight loss is calculated for different levels of revenue and different tax instruments.