Applied general equilibrium models

This article focuses on applied general equilibrium models and explores main features of these models. Examples of successful applications of these models are demonstrated and appropriateness of the applied computable general equilibrium models in policy evaluation is assessed. Conditions of existence and uniqueness of an equilibrium are considered and techniques for finding such an equilibrium are discussed. The task of calibration of parameters for these models is dealt with. Dynamic forms of applied equilibrium models are shown to be useful tools for policy evaluation.

Keywords: economic policy, applied general equilibrium models, computational techniques, dynamic models