The payoff of investment in CGE modelling

This volume collects three independent contributions which discuss the role of computable general equilibrium (CGE) modelling in both research and teaching. The first paper by John Chipman suggests that statistical methods could be incorporated into CGE analysis. He argues that this would allow CGE modellers to make more systematic use of available data and subject their models to empirical testing. In the second paper, Friedrich Schneider discusses a number of weaknesses of CGE analysis "from an outsider's perspective". He emphasizes the role of the calibration method and suggests the use of experimental results as well as a richer set of assumptions with respect to government behavior. The third paper by Bernd Genser focuses on the possible role of CGE modelling in university education, arguing that courses devoted to this method may substantially improve the students' understanding of economic inter dependencies.