Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal

Regional computable general equilibrium (CGE) models have grown in popularity in recent years as an alternative method to examine regional economies and regional policy issues. However, the contribution of regional CGE models has yet to be assessed. Therefore, this paper surveys the literature related to regional CGE modeling. The survey includes a discussion of the contributions that CGE models have made to regional economic analysis. In addition, the basic approach of regional CGE modeling is outlined, and the key features of existing regional CGE models are detailed. The paper also appraises of the current state of the art of regional CGE modeling and suggests future research directions.