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Economic Impact of Productivity from Digital Technologies: A CGE Approach


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1 Senior Economist, Infinite Sum Modelling Inc., Seattle and Research Associate, Pune International Center, Flat No.4, Building No. 2, Chandralok Society, Model Colony, Pune 411016, Maharashtra, United States
     

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The main purpose of this study is to present an applied computable general equilibrium (CGE) model to the OECD economies and India. A CGE model is a neoclassical version of the Walrasian equilibrium, which models production sectors on perfect competition, full use of production factors, and the clearing of all markets of goods. The model thus enables the second objective of the study: To estimate the impact of digital technologies on the economies of the OECD countries and India. The macroeconomic effects resulting from the induction of the new technologies are quantified by simulations performed using the developed model. This analysis of the quantification of effects is extremely important, as the OECD economies were the first ones to adopt the new Information and Communication Technologies (ICT).

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  • Economic Impact of Productivity from Digital Technologies: A CGE Approach

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Authors

Somya Mathur
Senior Economist, Infinite Sum Modelling Inc., Seattle and Research Associate, Pune International Center, Flat No.4, Building No. 2, Chandralok Society, Model Colony, Pune 411016, Maharashtra, United States

Abstract


The main purpose of this study is to present an applied computable general equilibrium (CGE) model to the OECD economies and India. A CGE model is a neoclassical version of the Walrasian equilibrium, which models production sectors on perfect competition, full use of production factors, and the clearing of all markets of goods. The model thus enables the second objective of the study: To estimate the impact of digital technologies on the economies of the OECD countries and India. The macroeconomic effects resulting from the induction of the new technologies are quantified by simulations performed using the developed model. This analysis of the quantification of effects is extremely important, as the OECD economies were the first ones to adopt the new Information and Communication Technologies (ICT).

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References





DOI: https://doi.org/10.21648/arthavij%2F2021%2Fv63%2Fi4%2F210588