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The US economy from 1992 to 1998: results from a detailed CGE model*


I Introduction

Between 1992 and 1998 US international trade grew rapidly relative to GDP We explain this and other changes in the US economy from 1992 to 1998 by dint of applying USAGE, (1) a detailed dynamic computable general equilibrium (CGE) archetype In doing so we use naturally exogenous variables as explanators.

The difficulty is that a certain quantity of of the naturally exogenous variables (eg household predilections and industry technologies) that might affect historical results are not observable. We vanquish this difficulty by first conducting an historical simulation. In the historical simulation we exogenize all variables that have been observ across the period 1992-98


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