The theoretical and empirical structure of the G-Cubed model

Abstract

This paper describes the theoretical and empirical features of G-Cubed, a multi-country, multi-sector intertemporal general equilibrium model. G-Cubed combines the attractive features of macroeconometric models and computable general equilibrium models into a unified framework. It has been used to study a variety of topics including: greenhouse gas policy, trade liberalization, tax policy and macroeconomic policy. This paper is a technical description of the model’s design.