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EPA's Office of Policy (OP) has developed a computable general equilibrium (CGE) model for use in regulatory analyses based on prior SAB advice to build capacity in CGE models to offer a more comprehensive assessment of the costs, benefits, and economic impacts of regulatory actions. CGE models are designed to capture substitution possibilities between production, consumption and trade; interactions between economic sectors; and interactions between a policy shock and pre-existing distortions such as taxes. OP has requested SAB review of both the code and documentation to ensure that it reflects established modeling practices and parameterization in the economics profession.
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