Course 12: General Equilibrium Modeling of Trade Policy
The goal of the course is to familiarize students with the tools employed to conduct applied general modelling experiments and to teach students how to conduct trade policy simulations at an introductory level employing computable general equilibrium (CGE)-models. As such, this course provides a practical introduction to quantitative economic analysis of international economic (trade) relations and policies. CGE-models are applied to a wide range of policy questions, in particular trade policy questions. However, they are also the main tool to analyse the economics of climate change policy.
The course will first review the basics of AGE/CGE models, followed by theoretical and hands-on sessions where we analyze the economic effects of several policy measures such as changes in national or international shocks in such models. We will work with the AGE/CGE model developed and maintained by the global trade analysis project (GTAP).
Afterwards, the students will be introduced more intensively into the theoretical structure of GTAP and learn how to implement trade policy shocks in RUNGTAP/GEMPACK and interpret the results. This part will focus on applying the modelling tools to practical policy experiments in trade policy and also development. The course concludes with a group assignment to calculate the macroeconomic and trade effects of a trade policy experiment.
ECTS: 3
13 Jul 2026 -
17 Jul 2026
In the following programs: WTI Academy 2025/26