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RCGE: a simple CGE model in R

I translated Shoven and Walley's (1984) CGE model into R and solved it as a minimization problem.The only difference in my model is that I've allowed the number of households to be specified to any number: in this example there are 4.

In order to demonstrate the model's potential use, I solve for the benchmark equilbrium. Next the scale parameter on the production function for good 1 is increased and the model is re-solved. To run this for yourself open "CGE makefile.R" and follow the steps it lists.

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Simple CGE in R

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