In the scenario, we took note of the amount of carbon that can be emitted to realize annual target concentrations, analyzed the impact of the uncertainty of the"Earth system model," which is a climate model capable of considering the absorption of greenhouse gases, on society and the economy, using an"applied general equilibrium model" which is one of economic models, and we obtained the following results.
Economists have gradually converted the subject into a sort of social mathematics in which analytical rigor as understood in math departments is everything and empirical relevance(as understood in physics departments) is nothing… general equilibrium theory… using economic terms like‘prices',‘quantities',‘factors of production,' and so on, but that nevertheless is clearly and even scandalously unrepresentative of any recognisable economic system….
The impacts of trade liberalization and facilitation measures in an FTAAP are studied using a Computable General Equilibrium(CGE) model of global trade.
What about dynamic stochastic general equilibrium(DSGE) modeling, which has been used as a standard approach over the past 10 years by central bank economists all around the world?
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