Optimal policy design: A CGE approach
Martín Cicowiez (),
Bernard Decaluwé and
Working Papers MPIA from PEP-MPIA
In this paper we extend an existing computable general equilibrium (CGE) model to perform optimal policy design exercises. Specifically, to an otherwise standard CGE model, we add an objective function that allows us to compute optimal values for selected policy variables. In turn, the CGE model operates as the constraint of the optimization problem. In addition, we illustrate the usefulness of the proposed approach to optimal policy design. For this purpose, we develop an exercise with real data from Argentina.
Keywords: Computable General Equilibrium; Optimal Policy Design (search for similar items in EconPapers)
JEL-codes: D58 E61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:lvl:mpiacr:2017-07
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