Application of CGE models for estimating the efficiency of managerial decisions

The paper overviews Computable General Equilibrium (CGE) modeling as a new tool for quantitative estimations of the consequences of managerial decisions. It examines the advantages of this class of models as against other modeling techniques and dwells on calibration issues. Finally, the paper describes a quantitative tool, which was employed for the analysis of the relations between certain components of shadow economy and major macroeconomic indicators of Russia (e.g., GDP and consumer price index).