Computable general equilibrium (CGE) models are widely used by governmental organizations and academic institutions to analyze the economy-wide effects of events such as climate change, tax policies and immigration. This book provides a practical, how-to guide to CGE models suitable for use at the undergraduate college level. Its introductory level distinguishes it from other available books and articles on CGE models. The book provides intuitive and graphical explanations of the economic theory that underlies a CGE model and includes many examples and hands-on modeling exercises. It may be used in courses on economics principles, microeconomics, macroeconomics, public finance, environmental economics and international trade and finance, because it shows students the role of theory in a realistic model of an economy. The book is also suitable for courses on general equilibrium models and research methods and for professionals interested in learning how to use CGE models.

This book provides a practical, how-to guide to CGE models suitable for use at the undergraduate college level.

1. Introduction to computable general equilibrium models 2. Elements of a computable general equilibrium model 3. The CGE model database: a social accounting matrix 4. Final demand in a CGE model 5. Supply in a CGE model 6. Factors of production in a CGE model 7. Trade in a CGE model 8. Taxes in a CGE model 9. Conclusion: frontiers in CGE modeling; Modeling exercises Appendix. Social accounting matrix for the United States, 2004 $US billions Practice and review answer key Model exercise answer key.