Modelling International Relationships in Applied General Equilibrium

The model can be used for ex-ante analyses of policy changes to answer “what-if” type of research questions. It has also been used for ex-post analyses. The scenarios are formulated by changes to economic policy parameters, such as tariffs, non-tariff barriers, subsidies and taxes. These policy changes are usually sector specific or (less commonly) factor-specific as well as country or country-pair specific.

Although this is less commonly applied, the model can also be used for ex-post analyses. The research question would be formulated as follows: What would the situation in the last year (or the most recent year for which data is available) have been if the policy had not been implemented? And how does this compare to the actual observed situation?

These policy changes can apply to trade, including intra-EU trade, agricultural policy, climate, energy, transport and others.