CoPS/IMPACT Working Paper Number G-214

Title: Solution Software for CGE Modeling

Authors: Mark Horridge and Ken Pearson


We describe the progress of computable general equilibrium (CGE) modeling software since the 1980s and contrast the main systems used today: GAMS, MPSGE, and GEMPACK. The development of these general-purpose modeling systems has underpinned rapid growth in the use of CGE models and allowed models to be shared and their results replicated. We show how a very simple model may be implemented and solved in all 3 systems. We note that they produce the same numerical results but have different strengths. We conclude by considering some challenges for the future

JEL classification: C63, C68, D58.

Keywords: CGE, software, GAMS, GEMPACK, MPSGE.

A later version of this paper appears in the Handbook of Computable General Equilibrium Modeling, Volume 1, pages 1331-1381, edited by Peter B. Dixon and Dale W. Jorgenson, and published by Elsevier in 2013. It may be downloaded here.

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