@article{Castelli:329519,
      recid = {329519},
      author = {Castelli, Chiara and Castellini, Marta and Ciola, Emanuele  and Gusperti, Camilla and Romani, Ilenia Gaia and Vergalli,  Sergio},
      title = {A review of macroeconomic models for the WEFE nexus  assessment},
      address = {2022-11-28},
      number = {2395-2022-2047},
      series = {35.2022},
      pages = {46},
      month = {Nov},
      year = {2022},
      abstract = {The Water, Energy, Food and Ecosystems (WEFE) nexus refers  to the system of complex and highly non-linear  interconnections between these four elements. It now  represents the basic framework to assess and design  policies characterized by an holistic environmental end  economical perspective. In this work, we provide a  systematic review of the macroeconomic models investigating  its components as well as combinations of them and their  interlinkages with the economic system. We focus on four  different types of macroeconomic models: Computable General  Equilibrium (CGE) models, Integrated Assessment Models  (IAMs), Agent-based Models (ABMs), and Dynamic Stochastic  General Equilibrium (DSGE) models. On the basis of our  review, we find that the structure of IAMs is currently the  most used to represent the nexus complexity, while DSGE  models focus only on single components but appear to be  better suited to account for the randomization of exogenous  shocks. CGE models and ABMs could be more effective on the  side of the policy perspective. Indeed, the former can  account for interlinkages across sectors and countries,  while the latter can define theoretical frameworks that  better approximate reality.},
      url = {http://ageconsearch.umn.edu/record/329519},
      doi = {https://doi.org/10.22004/ag.econ.329519},
}