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Partial equilibrium analysis illustrates results for one market at a time. However, there often exist market interactions and thus market feedbacks. Pricing outcomes in one market usually have effects in other markets, and these effects, in turn, create ripples throughout the economy, perhaps even to the extent of affecting the price-quantity equilibrium in the original market. To represent this complex set of economic relationships, it is necessary to go beyond partial equilibrium analysis and construct a model that permits viewing many markets simultaneously. This Web Book provides an introduction to and overview of the general equilibrium modeling framework in the context of regional analysis.
Regional Research Institute, West Virginia University
Original Publication Information
Equilibrium modeling; equilibrium analysis, regional analysis, general equilibrium modeling
Vargas, E.E, Schreiner D.F., Tembo G., & Marcouiller, D.W. (1999). Computable General Equilibrium Modeling for Regional Analysis. Reprint. Edited by Scott Loveridge and Randall Jackson. WVU Research Repository, 2020.