Introduction to Computable General Equilibrium Models

Trade, climate policy, taxation, and other economic questions rarely stay within the boundaries of a single market. Introduction to Computable General Equilibrium Models explains how CGE models represent those economy-wide connections—and how economists use them to examine the effects of policy and economic shocks.

See the economy as an interconnected system

Mary E. Burfisher builds the theory through a graphical approach, then uses results from small-scale models to show how economic assumptions connect to model outcomes. That pairing helps readers follow not just what a model produces, but the economic reasoning behind it.

From model foundations to policy questions

The book develops the components of CGE analysis across topics including model data, demand, supply, factors of production, trade, taxes, and regulation. Taken together, these subjects show how decisions by consumers and producers can add up to broader economic effects.

Practice with applied examples

Eleven hands-on exercises introduce modeling techniques through real-world economic problems. The exercises give readers a chance to work with the material rather than treating CGE analysis as a black box.

For students and readers of economic analysis

Designed as an undergraduate-level introduction, this third edition is suited to economics students building a foundation in computable general equilibrium modeling, as well as readers who produce or interpret CGE-based analysis. It offers a structured way to bring separate areas of economics into a broader, economy-wide perspective.