General Equilibrium Models Reveal Powerful Policy Levers for Transforming Economies
The article shows how to use EViews to create and analyze general equilibrium models, which are used to understand how policies affect economies. By applying a specific framework to Indonesian data, the author demonstrates how to simulate the impact of shocks and policies on welfare and economic structure. The results highlight the importance of certain parameters in determining how an economy responds to changes and the effectiveness of policy measures.