The Effect of Exchange Rate Policy, Oil Shocks and Income Tax on GCC Economies Using Computable General Equilibrium Model

This paper reviews the experience of the use of computable equilibrium models. The range of issues on which CGE have had an influence is quite wide, and includes structural adjustment policies, international trade, public finance, agriculture, income distribution, and energy and environmental policy. CGE models provide a comprehensive picture of the effect of economic policy on the different economic players inside an economy as well as the interactions between the economic agents, such as consumption, investments, government spending, imports, and exports. Research regarding the use of CGE models in GCC countries is not extensive. These models are highly recommended by the governments of these states who are looking forward to economic studies based on these models