New Economic Model Promises to Transform Regional Prosperity
This chapter delves into a model called computable general equilibrium (CGE), which helps analyze how different regions interact economically. The CGE model focuses on the intricate balance between savings and investments at a regional level. By combining input-output analysis and macroeconomic assumptions, it sheds light on how policies can impact regional economies. The study emphasizes the complexity and nuances of open-economy adjustments compared to closed-economy mechanisms due to factors like balance of payments. Overall, the CGE model provides a detailed understanding of regional economic dynamics, offering insights into how different policies can influence economic equilibrium within and between regions.