New CGE Modeling Technique Unlocks Accurate Economic Forecasting for Policymakers
The article explores how to create a realistic economic scenario for the future using projections of key economic indicators. Researchers used a method that adjusts the parameters of a model until it matches these projections. They focused on integrating projections for variables like GDP and market prices that are influenced by the model itself. The study builds on previous work that used entropy-based techniques to estimate behavioral parameters. The researchers found a way to fit the model's parameters and variables to projections from major research institutes.