Regional CGE models revolutionize regional policy analysis and decision-making processes.
Regional Computable General Equilibrium models, or RCGE models, are used to study the impacts of policies on specific regions. These models are more detailed than traditional Input-Output models and provide valuable information for researchers. However, they are not widely used by government policymakers. RCGE models come in different types, such as region-specific, bottom-up, and top-down models. Overall, RCGE models are flexible and can be adapted for various applications. As computational economics advances, more complex applications of RCGE models are expected to emerge. To increase the use of RCGE models by policymakers, certain conditions at the micro, meso, and macro levels need to be met.