Original scientific paper

COMPUTABLE GENERAL EQUILIBRIUM MODEL FOR CROATIAN ECONOMY

Marinko Škare
Saša Stjepanović

Abstract

Computable General Equlibrium models or CGE models, are one of the most useful models in a global
development planning and macroeconomic analysis. CGE models are discovered in 1960., but there was
no major development until 1978. These models have become a standard tool of empirical economic
analysis. These models dominate in major part of applied econometric analysis, which is involved on
problem solving in economic development and local economic policies. They are inevitable tools for
analysis in international trade and government planning, changes in oil markets, and at the same time
they are used in the analysis in tax reforms, welfare distributions, and even in the analysis of global
warming. From that it concludes that uses of CGE models are very wide-spread. In the last few years,
improvements in a specification of the model, availability of data and development in computer
technology results in increased efficiency and reduced cost of analysis, which is based on CGE models.
CGE models are most commonly used for analysis in countries that are in transition, but basic framework
and specification of a model can be used from global to the local level.

Keywords

CGE model; General equilibrium; Croatian Economy

Hrčak ID:

70509

URI

https://hrcak.srce.hr/70509

Publication date:

1.6.2011.

Article data in other languages: croatian

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