This paper reviews the experience of the use of computable or applied general equilibrium (CGE or AGE) models to affect public policy. The range of issues on which CGE models have had an influence is quite wide, and includes structural adjustment policies, international trade, public finance,...

This paper develops a dynamic stochastic general equilibrium model to analyze and derive simple budget rules in the face of volatile public revenue from natural resources in a low-income country like Niger. The simulation results suggest three policy lessons or rules of thumb. When a resource...

This chapter reviews the experience of computable general equilibrium (CGE) models from the perspective of how they have, or have not, influenced public policy in developing countries. The paper describes different classes of empirical models – from small, stylized to large, multisectoral...

Noting that South Africa may be one of the few African countries that could contribute to mitigating climate change, the authors explore the impact of a carbon tax relative to alternative energy taxes on economic welfare. Using a disaggregate general-equilibrium model of the South African...

Devarajan, Go, Page, Robinson, and Thierfelder argued that if aid is about the future and recipients are able to plan consumption and investment decisions optimally over time, then the potential problem of an aid-induced appreciation of the real exchange rate (Dutch disease) does not occur. In...

The authors show how two-sector models can be used to derive policy lessons about adjustment in developing economies. In the past two decades, changes in the external environment and in economic policies have been the key factors in the performance of developing economies. By and large the...