Governments Can Accurately Predict Economic Impacts of Policy Decisions
The article explores how computer models (called CGE models) can help understand how policies impact different markets in the economy. It uses a special type of model to simulate how an economy functions and how changes affect it over time. By looking at various scenarios like trade deals, energy policies, and climate change, the researchers found that these models can give insights into how our actions can influence economic outcomes. They focus on real-world situations, like how opening up trade can affect businesses, how energy policies can shape the economy, and how responses to climate change or natural disasters can play out economically.