Concluding Remarks

Abstract

Many innovations by pioneering CGE modellers and economists have made CGE models one of the indispensable empirical tools for macro-economic analysis. CGE models have been developed to analyse a wide range of policy issues. In addition to the minimal data requirements for model parameter estimation in view of the model size, the significant flexibility in incorporating various features useful for empirical analysis facilitates the widespread use of CGE models. In response to the increasing need to deal with impending policy issues, CGE models have been extended from basic versions to those better suited to modelling the complexities of a modern economy. Such extensions have been made in two directions. One is within the CGE model framework, and the other is outside of it.