This report documents the Dynamic Applied General Equilibrium Model (DYNAGEM) developed at the U.S. Department of Agriculture's Economic Research Service to analyze issues of regional integration. In contrast with static CGE models, DYNAGEM endogenizes major intertemporal economic behavior, such as investment, savings, and international capital flows. The model can more satisfactorily analyze economic adjustment processes induced by a policy change in both the short- and medium-run. Here, the model is applied to NAFTA to illustrate the framework's ability to gauge policy impacts.