CEPII, Recherche et Expertise sur l'economie mondiale
 Highlights :
  • MIRAGE is a multi-sector, multi-region computable general equilibrium model designed for economic policy analysis, particularly focusing on trade and environmental policies.
  • The model features advanced trade modeling capabilities with detailed treatment of trade costs, Armington specifications, and analysis of trade barriers through the MAcMap-HS6 database.
  • Enhanced energy sector representation includes detailed electricity generation modeling with renewable energy integration considering base-load and peak-load, capital-energy bundles, and greenhouse gas emissions accounting with carbon market mechanisms.
  • The sequential dynamic framework enables long-term economic projections by combining total factor productivity calibration with macroeconomic forecasts from the MaGE model for consistent policy scenario analysis.

 Abstract :
MIRAGE is a multi-region, multi-sector computable general equilibrium (CGE) model, initially devoted to trade policy analysis and more recently applied to long-term growth and environmental issues. It incorporates energy, carbon pricing, imperfect competition, and rigid investment allocation, in a sequential dynamic setup where installed capital is assumed to be immobile. The model provides trade analysis with detailed treatment of trade costs and Armington specifications, drawing upon a detailed measure of trade barriers through the MAcMap-HS6 database. Production features nested CES functions with capital-energy bundles under both perfect and imperfect competition frameworks, while final demand follows a LES-CES utility function. The sequential dynamic framework enables longterm simulations by combining total factor productivity calibration with macroeconomic projections from the MaGE model. The most recent version offers significant improvements in electricity sector modeling with renewable energy representation, base-load and peak-load dinstinctions, and detailed greenhouse gas (GHG) emissions accounting with carbon market mechanisms. This documentation provides complete technical specifications, calibration procedures, and implementation guidelines for researchers and policymakers using MIRAGE for economic policy analysis.

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 Keywords : Computable General Equilibrium | Trade Policy | Environnemental Policy

 JEL : C68, F1, Q54, Q56, Q40
CEPII Working Paper
N°2026-01, January 2026

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