Applied General Equilibrium Analysis

We examine the evolution of applied, computational general-equilibrium models (AGE), from their inception in the 1970s through the end of the twentieth century. We describe the simultaneous development of several different “strains” of such models, along with some of the ensuing methodological disputes. The history of AGE analysis reveals how a number of developments, including computerization, have profoundly shaped applied economics. We examine the forces that came together to produce the early growth of AGE analysis, and we consider possible explanations for the subsequent marginalization.