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A CGE (Computable General Equilibrium) analysis is an economic model that represents the economy and evaluates the effects of policy changes, taxation, or other economic impacts by analyzing interactions between various sectors and agents.
Typically, entities involved in significant economic activities or those impacted by specific economic policies or regulations may be required to file a CGE analysis. This often includes businesses, governmental agencies, and research institutions.
Filling out a CGE analysis involves collecting relevant economic data, defining assumptions about the economy, setting up the model structure, entering data into the model, and running simulations to analyze outcomes under various scenarios.
The purpose of a CGE analysis is to assess the economic effects of policy changes or external shocks in a comprehensive manner, helping policymakers understand the implications for growth, income distribution, and resource allocation.
A CGE analysis generally reports on economic indicators such as GDP changes, sectoral output, employment impacts, and changes in prices, as well as the distribution of effects across different socioeconomic groups.
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