Authors: Peter B. Dixon And Maureen T. Rimmer
Computable General Equilibrium (CGE) modelling started with the publication in 1960 of Johansen's model of Norway. It continues to the present time as an active research and policy field. In a recent count, there were 33,000 people in the GTAP CGE modelling network alone. This paper identifies GEMPACK software, developed in Australia for solving large scale CGE models in the Johansen school, as one of the factors contributing to the enduring popularity of CGE. The paper tells the story of how GEMPACK came into existence, how it works, and how it relates to Johansen. The paper was prepared for a workshop on bridging the gap between CGE and New Quantitative Trade (NQT) models. In illustrating GEMPACK and showing connections between CGE and NQT, we present a GEMPACK solution and analysis of Eaton and Kortum's seminal NQT model, published in Econometrica in 2002.
JEL classification: C68, F11, F13, C63
Keywords: GEMPACK CGE software; GEMPACK and GAMS; New Quantitative trade modelling; Eaton and Kortum
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