Computable General Equilibrium (CGE)

Economywide impact of policies and investment

Computable General Equilibrium (CGE)

Our Computational General Equilibrium (CGE) model captures all economic interactions in the New Zealand economy, including trade and spending between firms on one another’s goods and inputs; spending by consumers on goods; investment decisions; and dynamics in the market such as demand for factors such as capital and labour, trade, employment and wage effects.

CGE models are a class of economic models that estimate how an economy might react to changes in policy, technology or other external factors. We are able to analyse large, discrete, policy changes that far from the status quo, building a bridge between economists and policy makers, and providing evidence for decision makers. We offer you:

  • Interventions to reduce land transport greenhouse gas emissions (Work in progress)
  • Incorporating distributional Impacts in the cost-benefit appraisal framework.
  • Incorporating distributional Impacts in the cost-benefit appraisal framework.
  • Fair fare for public transport, demand elasticities for Auckland City suburbs.

We provide you and your stakeholders with an understanding of how of your investments and activities affect wider financial, economic and social outcomes .