This volume provides a practical guide to building and using simulation models for international trade theory and policy. Through a sequence of carefully constructed and fully documented programs, the volume illustrates how numerical simulation can be used to analyze a wide array of problems. Modern computable general equilibrium (CGE) models for trade policy are challenging in their complexity, but can be thought of as constructions of much simpler building blocks. By developing the building blocks in a consistent manner, and gradually putting them together in more complex and interesting ways, the volume makes CGE accessible to anyone with a background in microeconomics/trade theory. The volume will be useful to graduate students and researchers in international trade looking for a detailed guide to building simulation models and to developing the skill set necessary to enter into the world of CGE modeling.

1. Introduction 2. Getting Started With GAMS Theory of Consumption, Production and Trade 3. Utility Maximization 4. Cost Minimization 5. Long-Run Production 6. Short-Run Production 7. Dual Approach 8. Transition 9. Higher Dimensions 10. Intermediate Inputs 11. Autarky 12. Small Country Trading Equilibrium 13. Non-traded Goods 14. Large Country Trading Equilibrium 15. Two Country Trading Equilibrium 16. Higher Dimensions and Trade 17. Reciprocal Dumping 18. Monopolistic Competition Commercial Policy and Distortions 19. Tatiffs and Other Trade Interventions 20. Domestic Taxes and Subsidies 21. Factor Market Distortions Computable General Equilibrium 22. Multiple Households and Other Sources of Demand 23. Armington Preferences 24. Joint Production 25. Social Accounting Matrices 26. Closure 27. Single Country Competitive CGE 28. Concluding Comments Appendix Bibliograghy Index