Economic Model Foundations
External Models
Understand how leading macroeconomic and climate-economy models differ, what they are actually good at, and how CE converts them into transparent economic signals.
Learning Objectives
- Differentiate global baseline, policy, international, and stress-testing model families.
- Explain how IAM and NGFS traditions connect climate and macroeconomics.
- Recognize how assumptions about damages and policy transmission dominate outputs.
- Translate macro outputs into CE decision signals without oversimplifying them.
- Identify common economic-model misuse patterns in product settings.