Computable general equilibrium (CGE) models have become an increasingly popular tool in macroeconomic analysis. The model tradition has proved particularly suitable for the study of structural changes in economy and long-run impacts of policy measures. The main fields of application include trade policy, fiscal policy, development strategies and environmental and energy policies. 

The aim of this paper is to give an overview of the modeling tradition, its theoretical foundation, characteristic features and main applications. Because the paper serves as a preliminary report to the Government Institute for Economic Research particular attention is paid to the possibilities CGE-modelling offers to research in public economics.