Your first policy simulation#
A CGE counterfactual asks:
If the exogenous policy or environment changed, what internally consistent equilibrium would satisfy the model afterward?
Start from a solved benchmark:
from cge_core import StandardCGE
base = StandardCGE.example().solve()
Create an independent scenario and change an economic assumption:
policy = base.scenario("Tariff cut")
policy.tariff("BRD", change=-0.50)
change=-0.50 means “reduce the existing tariff rate by 50 percent.” It does not mean
“subtract 50 percentage points.”
Solve the new equilibrium:
result = policy.solve()
Compare all endogenous variables with the benchmark:
comparison = result.compare(base)
comparison
The resulting differences reflect all model adjustments together: domestic and import prices, production, trade, factor allocation, income, demand, saving, and other endogenous quantities respond jointly.
For a second independent experiment:
factor_case = base.scenario("More capital")
factor_case.endowment("CAP", change=0.10)
factor_result = factor_case.solve()
The two scenarios do not share mutable counterfactual state.